Today’s increasingly demanding customers, coupled with rising costs — in virtually everything from the price of raw materials to logistics fees — present quite a challenge to many retail businesses. On one hand, you have to make sure that your net profit is still higher than your expenses. On the other hand, you want to keep your customers happy, especially since they know that they have a lot of other options to consider if they decide they don’t want to buy from you.
Effective inventory allocation can help address the delicate balance between these two goals: it ensures that you have enough assets in your store or warehouse to satisfy your customers, but neither too much nor too few to negatively impact efficiency in your business processes.
If you’re looking for a way to create the ideal inventory allocation strategy for your retail business, then designing and then perfecting your processes according to these telltale signs is recommended:
- Telltale Sign #1: Consistent availability across all locations without having excess stock
- Telltale Sign #2: Optimal sell-through across all channels, including online portals
- Telltale Sign #3: Reduced in-store transfers and in-store stock outs
- Telltale Sign #4: The right sizes and colors available in the right store, at the right location
- Telltale Sign #5: Very happy customers
ORS ReAl 4.0 or Retail Allocation does ensures that you hit all of these markers and more. Designed to optimize stock allocation and replenishment, ORS ReAL 4.0 also helps boost customer experience by allowing you to manage your allocation, integration, and scheduling mechanisms, as well as analyze your sales pattern and strategies. Meaning, you can sort and stack the relevant data that will inform the best possible decisions and the most viable ways to boost your processes and, by extension, your profit.
With ReAl 4.0, you can:
- Reduce out-of-stock probabilities and the number of store deliveries, as well as recall costs at the end of the season;
- Increase the likelihood of closed sales through proper shipping logistics;
- Define service levels and provide better customer service and experiences; and
- Minimize store-stock on hand at the end of the season and make better use of store space
Ready to see how an effective inventory allocation strategy can revolutionize your retail business? Request a demo today!