Once your initial stock allocation has been made, continuing to have stock in the right place at the right time will optimise inventory levels for better sales performance. Within Merret, user-defined intelligent replenishment algorithms ensure that your stock can be automatically and dynamically moved between your warehouse and stores, as a dependable automated process with flexible options.
Merret offers three methods of store replenishment, which can manually be turned on/off, offering current and future benefits to the retailer:
- Ideal replenishment
Ideal stock levels are user defined (and often automatically set as part of an initial allocation process) with min/max levels to prevent under/over stocking. Sales performance is tracked and ideal stock levels replenished.
- Replenishment to planned cover
With greater insights into your stock turn, inventory forecasting and planning stock cover is an easy way to prevent selling out.
- ‘n for 1’
Beneficial for seasonal or continuity items, this simple replenishment rule keeps stock levels at their optimum, whether this be fixed, increasing, or decreasing. (For example, for every 1 that you sell, 2 get replenished).
Managing Ideal Stock Levels
Dynamic Forecasting: Performance at SKU/Site level is automatically reviewed and ideal stock levels increased/decreased to optimise stock, enabling more full price items to be sold.
Future Stock Levels: Changes to ideal stock can be forecast and systemically defined prior to specific activity e.g. promotional events.
Store grading is standard industry practice; Merret allows retailers to define stores within up to 5 levels of hierarchy. Replenishment rules can be set to establish stock levels received by different grades to reduce the possibility of selling out or unprofitable stockholding.
Merret uses stock rationing in the face of low or no stock, and replenishes stock based on a series of rules that ensures the stock goes to where it can be best utilised. Substitution can also be activated, to offer acceptable substitutes if the required continuity product is out of stock.
The benefits our customers are experiencing through our auto replenishment system include:
- Optimised sales performance: Order the right amount of product, to be delivered at the correct time, to the best place. Our auto replenishment system maintains optimum inventory levels on all products so that you can sell more effectively.
- Reduced mark-downs: Optimised stock levels allow you to fulfil your customer demand with fewer stock outs. With a greater sell through of full priced stock and a reduced rate of markdown, margins are protected and profits soar.
- Maximise stock turn: Confidently fulfil customer demands without inflating inventory.