Aligned costs and benefits of stock transfers: automated stock optimization for different sales channels with comprehensive control options.
Retailers are often faced with a dilemma: a slow seller in one store is a hit in another and is urgently needed there. Especially following seasonal events and campaigns as well as promotions, imbalances and product range failures lead to shortages and surpluses, which in turn result in unnecessary markdowns or unnecessary new orders. To avoid alienating customers and to actually seize sales opportunities, the transfer of slow sellers from store to store can pay off.
The calculation and analysis of possible transfers between stores is highly complex, and the complexity increases with an increasing number of stores, channels and articles. A manual calculation of all possible transfer combinations is no longer feasible and meaningful results are no longer available.
The powerful transfer module solves the costly dilemma by minimizing imbalances in the interaction of all channels. Self-learning algorithms automatically calculate and analyze all conceivable combinations within seconds and proactively suggest the most profitable transfer options. Influencing factors such as ageing, transfer and transport costs are included in the calculation, as are the distance and size of the stores, thus guaranteeing a high degree of forecasting accuracy in dynamic situations.
Retailers are provided with the optimal decision basis to help them choose the transfer option that avoids sales losses and discounts, while minimizing possible transfer costs. The system identifies potential source and target stores for each individual article based on sales and inventory development and compares the expected benefit using what-if scenarios. The smart consolidation of transfers at the article or store level also provides striking savings potential in logistics costs.
The close integration with the replenishment and allocation modules enables the gathering of insights into inventory developments and merchandise distribution. This is the basis for a holistic optimization of inventory management and more precise planning.
Key Feature 1 – Outlet/Off Price
We offer brands and retailers the optimal solution for assortment management for off-price branches and outlets: when calculating possible transfer options, the sales potential of an article in the outlet is also considered. After comparing possible costs and potential benefits, a proposal is provided to the user. Determining each outlet’s individual demand per article cluster takes into account not only costs and benefits, but also the available sales area per article cluster. This means that sales potential can also be increased beyond the product lifecycle after markdowns, e.g. in the outlet.
Key Feature 2 – Multi-perspective Optimization
The digital services of aifora intermesh seamlessly and optimize business processes holistically and comprehensively. In order to break down potential silos, the analysis and management of the transfers takes place in constant interaction with the modules for markdown optimization and allocation. This gives retailers a transparent overview of the chances of success of their measures and enables them to make better decisions.
Key Feature 3 – What-if Scenarios
In order to analyze and compare different stock transfer options and their effects, we simulate scenarios that can be evaluated using what-if analyses. For the user, this increases the transparency of the interdependencies and creates trust in the tool. The respective effects on the defined target KPIs are predicted and evaluated, whereby these scenarios offer ideal decision support for the user. The final decision is ultimately made by a person who enhances the prognosis through knowledge and experience.