Project Description

Traditionally, retailers have looked at planning, allocation, and replenishment as three distinct disciplines within the business. In our opinion, this approach misses a significant opportunity to reduce inventory, improve service levels, and increase revenue. Working together and focusing on leveraging a single unified demand signal, these three groups can dramatically change the value retailers create for their shareholders.

Bringing Planning, Allocation, and Replenishment Together

Rethinking the Traditional Approach

When considering retail planning, allocation, and replenishment, we need to rethink the traditional approach of allocating against pre-season plans and min-max replenishment models that only reward unit sales. Retailers must instead focus on leveraging predictive demand analytics to influence planning and omnichannel fulfillment decisions.

The opportunity includes the following key elements:

  • Leverage a unified demand signal to build better financial and assortment plans, using more than just last year as a driver
  • Incorporate demand analytics to drive more responsive pre-season and in-season allocations
  • Utilize predictive forecasts to drive replenishment processes that support an omnichannel environment

Adapting your end-to-end process to leverage a unified demand signal will create consistency throughout the planning and fulfillment processes, using the best data and analytics to support a forward-looking business process.

You may also like