Optimizing Retail Allocation: 10 Must-Have Capabilities
Merchandise allocation is a key component of retail planning and is crucial for all retail business models. Allocators face a unique challenge: how to place every single item in the best possible retail location at the exact time to achieve lowest possible cost, minimal markdown and maximum profit. Mathematical algorithms can execute retail planning goals and optimize retail allocation store-by-store, channeling the flow of stock according to factors such as available selling space and store sales performance to ensure the right blend of items, styles, colors and sizes are provided while avoiding overstock and out-of-stock conditions.
As a retail planner, you have the merchandise, but can you place every single item in the best possible retail location at the exact time to achieve lowest possible cost, minimal markdown and maximum profit? Whether it is a specific style/color/size in a store for next Friday, controlling the amount of back stock in a DC, reserving units for a catalog based on drop date and unit projection, or planning for the next online campaign, automating and optimizing your allocation strategy can make or break your ability to compete.
Data driven merchandising and assortment plans should be enhanced by automated, on target allocation strategies. A smart, flexible retail allocation process needs a highly capable software to model multiple business services. Solutions come in many shapes and sizes, sourced from best of breed software vendors, ERP system providers, or internal IT departments.
This white paper goes into detail on 10 core ways to automate and optimize the retail planning process, from distribution to store door, for increased efficiency and sales success.