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Do you have your stock in the right place?

Are you responsible for inventory management at your store(s)? Do you frequently have to say “no” to your customers? Not only do you disappoint your customers, you also needlessly miss out on sales. That’s a shame. Because if you don’t have a pair of jeans in size 32/32 in stock at store A, but have plenty at store B, that’s a missed sales opportunity. Do you actually know if you have your stock in the right place? In this blog, we will answer that question for you.

Standard allocation

The distribution of stock across your stores starts with the initial allocation. Like many others, you probably use a standard allocation based on a standard size curve, for example 1-2-3-3-2-1. If you sell one black polo T-shirt, size XS, once a month, this is replaced with a new one (1 on 1 replenishment). But what if you sell the same polo, size XS, once a week? Could you have sold 2 T-shirts per week? In other words, do you have sufficient insight to replace your stock level according to item, color, size and store level?

External factors

The example described above shows that replacing stock based on a standard size curve does not always work effectively. And we have not even talked about unexpected, external factors. The summer weather extends a few weeks into September and all the winter jackets are already hanging in the store, but sales are lagging behind. If the weather suddenly turns cold at the end of September and the sales skyrocket, can you react quickly enough to demand with 1 on 1 replenishment? It will probably take you too long to bring stock up to the right level and you will have to say no when there is a demand for several different sizes.

Dynamic inventory management with Smart Supply

To be sure that you have your stock in the right place, you need a more dynamic form of inventory management. No standard 1 on 1 replenishment, but re-stocking decisions based on demand. Smart Supply is a stock optimisation software that determines your inventory replenishment based on actual sales transactions. Stock is not generally distributed evenly over all stores. Our algorithm calculates which product, in which size and color should be sent to which store. Where is the potential per item the highest? Based on that information, stock is sent from the distribution center to the right location. This allows you to quickly react to an increase in demand at one of your stores. Would you like to learn more about the opportunities available with dynamic inventory management? Discover the possibilities with Smart Supply. Request a demo of get in touch with us.


Graaf Engelbertlaan 75
4837 DS Breda
The Netherlands

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