Retailers these days are struggling with stock redistribution. Lack of real-time data and appropriate technology, followed by a dynamic market environment leads to such issues. Inability to forecast demands and Retailers using outdated technology have a hard time balancing stock, Reorder Point/ Max inventory, and so on. Hence, they require a solution like LS Retail Software Solution: one of the Best Inventory Management Software.
Store Stock Redistribution is a part of the LS Replenishment suite and is completely integrated with LS Central as a key component. It ensures that the correct items are present at the right place at the right time. LS Central can successfully process all this by calculating and offering transfer orders and purchase orders for stores and warehouses.
Purchase Replenishment Journals and Stock Replenishment Journals support processing for constantly occurring products that are purchased or delivered either straight to a warehouse or the stores. Generally, demands are either fulfilled with the transfer orders from the warehouse or through the purchase orders for deliveries straight from the vendors to the stores.
This suite also introduces Redistribution Replenishment Journals, which support store replenishment from other stores or warehouses. This can be very useful for items that are purchased once, or products that are at the end of their lifecycle. This stock exists in the store and needs to be sold out at minimal discounts. In these examples, the stock is scattered across stores. Some stores might have more products than others, and some might have more demand for stocks than others. This journal calculates and proposes item transfers to states with demand and less stock while eliminating out-of-stock situations.
Having healthy stock redistribution technology can deliver tremendous benefits to a business. Since every decision involves the resources in the shape of cost and time, retailers need to analyze requirements and benefits before making these shifts. Optimum store stock replenishment can offer benefits like:
- Improved inventory health
- Increased inventory turns
- Improved stock cover and reduced stock-outs at SKU (Stock Keeping Units) level
- Increased full-price sell-through
- Reduced brokenness
- Improved omnichannel distribution.
The Store Stock Redistribution calculates the number of items needed in a store to fulfil demands, followed by the number of items to be transferred from other stores or warehouses.
The core process is performed in three major steps:
- The system calculates the demands and excessive stock within the warehouse or the store.
- The user then goes through the calculation while narrowing down the items that are to be considered ahead.
- The system then calculates the overall trips (transfer between stores) to fulfil the demands in the stores.
Store Stock Distribution delivers the following calculations in order to calculate the supply and demand in the store.
Sales Demands: In this calculation type, the sales demand is calculated until the end of the season, lifecycle, or the end of the calculation horizon for the items throughout the stores and warehouses. In accordance with current stock and expected sales demands, followed by a buffer value, the system classifies locations into locations with demand and supply.
Stock Balancing: This calculation type includes calculating the average stock for all the items throughout all stores. According to current stock and average stock value, the system balances stocks between stock and thus classifies locations in locations with demands and supply.
Reorder Point/ Max Inventory: In this calculation type, the current stock for the items is calculated in stores and warehouses. In accordance with the Max. and Reorder Point, the system will classify locations into locations with supply and demand.
Manual Redistributions: This type of calculation is like the Sales Demand calculation; the sales demand is calculated until the end of the season, lifecycle, or the end of the calculation horizon for the items throughout the stores and warehouses. In addition, the system also calculates the current variant availability to spot broken units. This calculation does not endorse the classification of locations in locations with demand and supply. Nevertheless, it lets the user determine how the variants shall be redistributed across stores manually.
Ls Retail Software Solutions are one of the Best Inventory Management Software solutions. LS Central delivers an LS Replenishment suite that delivers Store Stock Replenishment. If you are looking to implement LS Central for accurate stock replenishment, contact Trident Information Systems. We are a Gold LS Retail and Microsoft D365 implementation partner.
