Stock replenishment is a standard retail process that consists of putting more stocks in order to fulfill the customers demand. Stock replenishment ensures that the right products are in the best place, at the optimum quantity.
Replenishment step is closely tied up with the previous step of conducting performance review. Once you’ve completed WSSI (Weekly Sales, Stock and Intake), you can then decide if you need to replenish some SKUs. Replenishments are best done while the products are still highly sought-after. It’s a missed opportunity if you don’t replenish those items, especially in today’s competitive market. Retailers can also automate replenishment using intelligent algorithms/software, which can be particularly beneficial especially during promotional or seasonal events.
To ensure you’re meeting demands, keep a close eye on your assortment and identify products that have a high sell-through rate. But not only that, here are some processes that need to be committed, such as:-
- Review own distribution channel presence ie. multi-brand retailer platform/offline brick and mortar store etc.
- Review competitor distribution channel presence
- Identify new distribution channel opportunity
- Review own marketing mix strategy across distribution channel
- Review competitor marketing mix strategy across distribution channel
- Optimize marketing mix strategy across distribution channel
Conducting regular review on replenishment will help to avoid losing easy sales that could damage a retailer’s profitability over time. It will help to implement the promotional, pricing and assortment strategies. Well executed replenishment based on market demand can gain additional profit by minimizing inventory levels and reducing loss of sales. Spare time for replenishment analysis so that over-stock and out-of-stock conditions can be minimized.
We hope you found this article helpful! If you have any questions or would like to explore the Omnilytics dashboard further, feel free to reach out to your respective Client Success Manager.