Smart Supply makes that go away!
Too much stock at the end of the season is not only harmful to the profit of your store or brand, it is also becoming an increasingly larger problem for the environment. If everything works right, it is no surprise if you have too much stock or not. Are there some articles that don’t sell as well during the season? That is very frustrating. These articles are put on sale, re-distributed over other stores, go to outlet centers or may even be destroyed. In all of these cases, it means two things: extra costs and lower profit margins. It also has an enormous impact on the environment.
Impact on the environment
Do you end up with way too much stock at the end of the season? You are not alone. The fashion industry in the Netherlands ends up with 21,5 million pieces of unsold clothing (Source: MVO Nederland). Some 13,8% of all newly manufactured clothing does not make it into the closet of the consumer, but remains at the manufacturer, wholesalers and store owners. This problem is due to poor trend forecasting or ordering too much inventory, but the root of the problem lies at a much deeper level: size, model and color. A large portion of this clothing is sold to commercial buyers or donated to charities. Over and above that, about 1,23 million pieces of clothing are destroyed a year – many in incinerators. You can imagine what negative consequences this has on the environment. Sustainable purchasing is therefore an important issue.
Sustainable purchasing with Smart Supply
These are disturbing numbers. Fortunately there is a solution. Today stock level is based on data from the past. In practice, this is not always the best approach. Smart Supply is a stock optimisation software that helps retailers make better decisions about their inventory. To drastically reduce stock surplus and create a healthier, more sustainable business. With Smart Supply your inventory replenishment is based on actual sales transactions. The algorithm in our software calculates the highest potential per SKU (Stock Keeping Unit) per location. This allows the software to make extremely accurate inventory recommendations based on the demand from the consumer. And this approach makes a difference. Want to know more about sustainable purchasing? Read more about Smart Supply or get in touch with us.