Smart Replenishment is the IT-topic in the fashion industry. During our yearly exhibition visits and recent media coverage, one thing became clear: the importance of strong in-season management has never been more evident. Both brands and retailers are recognizing its crucial role in staying competitive.
But what even is Smart Replenishment? And how does it work? No worries if you are new to the game; we’ve got you covered.
1. What is Smart Replenishment?
Smart Replenishment is the ‘new’ approach to inventory management. Imagine combining advanced data analysis, insights into product behavior, demand forecasts, and intelligent algorithms with the latest technologies, such as AI, Machine Learning, and Cloud Computing—voilà, you have Smart Replenishment.
Instead of wasting time staring at endless Excel sheets, Smart Replenishment does the heavy lifting. It makes millions of micro-decisions every day, adjusts targets dynamically, and automatically sends out replenishment orders (or chooses not to replenish if not necessary).
Why is that better than the traditional replenishment?
Traditional replenishment, also called static replenishment or 1-to-1 replenishment, is simple: you sell and replenish one. But this isn’t ideal. Sometimes, you should replenish more or not replenish at all. But manually making these decisions for each option, in each size and color, is impossible. Smart Replenishment makes these decisions for you!
The result?
- Save time: Focus on high-impact tasks while the solution does the minuscule work.
- Increased turnover: Always have the right product, at the right place, at the right price and time.
- Reduced overstock: Always have enough, but never too much.
Less workload
More turnover
Less overstock
But is this really a new concept? Not for us. At Chainbalance, we are truly replenishment experts. We have been perfecting our solution, Smart Supply, for twenty years and continue improving each quarter to offer you the best possible solution.
Let’s dive into the details of Smart Replenishment.
2. How does Smart Replenishment work?
Smart Replenishment relies on real-time data, smart algorithms, and cutting-edge technologies to automate inventory management. Here’s a breakdown:
Data collection and integration
Smart Replenishment starts by gathering data from multiple sources: historical and real-time sales, current stock levels, on hand, promotions, seasonal patterns, and product behavior. This comprehensive data integration provides a 360-degree view of inventory demand.
Our system seamlessly integrates with your ERP, making onboarding worry-free. To learn more about our integration process, check out this article: Are complicated implementations still up to date?
Demand forecasting
Smart Supply analyzes past trends and predicts future demand with impressive accuracy. This ensures optimal target levels for better sell-through rates.
Automated replenishment orders
The solution makes millions of micro decisions daily, calculates replenishment needs, and automatically places orders at the perfect time. No more guesswork - always have the right product at the right time and place.
Dynamic decision-making
The algorithm adjusts the target levels as needed. If Smart Supply detects higher demand, it increases the targets to ensure optimal sell-out. If it detects a lower demand, it decreases targets to avoid overstocking.
Continuous optimization
The solution constantly monitors sales and adjusts replenishment orders in real time, keeping stock levels agile and responsive to changing market demands.
3. Why is Smart Replenishment a game-changer for the fashion industry?
The fashion industry faces unique challenges like seasonal trends, fast-changing customer demand, and unpredictable demand. Here’s how Smart Replenishment addresses these pain points:
Reduced overstock and waste
Excess inventory is a significant concern for fashion brands and their partners. Smart Replenishment minimizes this by ensuring stock levels match actual demand, replenishing only what is expected to sell!
Enhanced customer satisfaction
With the right products available at the right time, customers are less likely to experience frustrating out-of-stock situations.
Improved operational efficiency
Automating replenishment lets your team focus on strategic tasks rather than manual effort while freeing your retailer of hours in the B2B portal. Implementing Smart Replenishment can save 80% of manual effort.
Better sales performance
Maintaining the right stock levels impacts turnover, reducing lost sales and maximizing revenue.
4. Key features of our Smart Replenishment Solution
Next to Smart Replenishment, our SaaS solution offers a comprehensive range of merchandise management modules covering both pre-season and in-season management:
Reporting: Upgrade your transparency with in-depth insights, KPIs, reporting, and store and product insights.
Smart PO Forecast: Accurate purchase order forecasting for your NOS articles. Available for fashion articles soon.
Smart Initial Allocation: Optimal first distribution of new products.
Smart Event Planning: Plan your events according to demand without disrupting your daily operations and replenishment afterward.
Smart Order Proposals: Automatically send order proposals to your retailers, including detailed product insights.
Smart Recommendations: Get recommendations for missing best-sellers, missing sizes, or non-sellers to optimize your store assortment.
Smart Store-to-Store transfers: Transfer missing products from one store to another. Our AI-based model will find the best transfer combinations, balancing costs with sales potential and CO2 emissions and assessing the fewest but most efficient transfers needed.
5. Why Chainbalance Smart Replenishment?
Of course, there are many other replenishment solutions on the market. But why is Chainbalance Smart Replenishment the best?
Get started with Smart Replenishment!
Are you ready to revolutionize your inventory management? Schedule a noncommittal discovery call with our experts to learn more about how our Smart Replenishment solution can transform your business.