Apparel stock allocation and replenishment planning system

The planner sees which partners lack specific sizes or colors. It combines available stock and replenishment with orders, demand and the rest of the season.

The quantities of model, color and size are divided according to the overall history or manager's decision without appreciating the real demand. Some partners lack marketable models, colors and sizes, while others accumulate a slow balance.

How the solution works

  1. The planner receives the approved needs, supplies and available sales and stock facts of the partners.
  2. The limited quantity is allocated according to contractual obligations and approved commercial priorities.
  3. The addition or redistribution scenario is assessed by the date of receipt, the need for size, and the rest of the season.
  4. A decision approved by the planner is passed on for purchase or stock execution; its result returns to the collection review.

Key challenges

  • Allocation of limited amounts to partners insufficiently justified
  • Ordering and approval of addition too slow
  • The result of the collection is seen too late

Solution capabilities

Planned goods and data used

Orders, despatches and the sale of a partner are separated; it is seen which partners lack relevant facts.

Allocation of a limited quantity

Quantities are allocated to a specific model, colour and size according to obligations and the priority rules are explained.

Supplement Time Check

The recommendation evaluates the approved delivery deadline, the minimum quantity and the time in which the item could still be sold.

Review of Collection Results

The team compares flaws, returns, discounts, and stocks over the same period. The report notes which partners' sales figures are missing.

The Planner's Decision and its Fulfillment

The correction has an explanation and enforcement confirmation so that the recommendation can be compared to the fact later.

Business context

Allocation of limited amounts to partners insufficiently justified
The quantities of model, color and size are divided according to the overall history or manager's decision without appreciating the real demand. Some partners lack marketable models, colors and sizes, while others accumulate a slow balance.
Ordering and approval of addition too slow
Partner sales, distributor balance, supplier term and order solution are not combined. Demanded models, colors and sizes are sold out unfilled, although there is still seasonal sales time.
The result of the collection is seen too late
Collection pre-orders, actual sales, flaws and returns are analysed separately. The team does not see which sizes or color demand can still be satisfied with the stock available. Addition, carryover or downs are considered too late. Partners lack marketable options, and goods left in other locations are nearing the end of the season.
In-demand sizes reach places selling them
A large remnant of the collection does not help a partner who lacks exactly the size they are buying. When the distribution is linked to the demand for specific options, it becomes possible to meet more orders with available stock. The decision must be made before the end of the season before the goods need to be sold at a high discount.

Core features

  • Planned goods and data used
  • Allocation of a limited quantity
  • Supplement Time Check
  • Review of Collection Results
  • The Planner's Decision and its Fulfillment

Key integrations

Enterprise resource planning system (ERP)
Pre-orders, purchases and stocks.
Warehouse management system (WMS)
stock of size and color.
Partners' actual sales figures
Actual sales and deficiency signals.
Business customer portal
Addition orders.
Supplier system
Supplementary terms and minimum quantities.

Potential impact (%)

The ranges indicate an illustrative relative change in the metric under the stated assumptions. Results depend on the starting position and actual use of the solution. Percentages for different metrics must not be added together.

Active timing of the allocation and replenishment solution preparation

12–36%Decreasing

This illustrative scenario assumes that 30-60% of manual data entry and handover work can be addressed. That share is assumed to fall by 40-60%. Company data is needed to verify both the addressable workload and the resulting change.

Comparing planner time for collections of similar size, including specifying missing data.

A stock of the collection's remaining options at the end of the season

2–12%Decreasing

This illustrative scenario assumes that 10-30% of the metric is attributable to addressable planning and execution shortcomings. That share is assumed to fall by 20-40%. Company data is needed to verify both the addressable share and the resulting change.

The quantity not sold at the end of the season is calculated by model, color and size, comparing collections with similar season durations. The days of lack of demand sizes are observed separately and are not added to the stock.

Revenue from the sale of clothing options

2–8%Increasing

In the example scenario, a stock redistribution based on demand for sizes and colors is associated with 20-40% of the initial indicator value. This part is predicted to grow by 10-20% without other conditions changing.

The sales revenue of the same collection after the stock redistribution is compared; account is taken of the rest of the season, the depreciations and the unmet need for sizes and colors.

Conditional calculation scenarios. The assumptions have not been validated against client measurements.

When this solution is relevant

  • There is often a lack of specific sizes, although combinations of other patterns, colors and sizes remain too much
  • Available Partner Sales Data
  • The limited amount of the collection is manually shared
  • Important season ending discounts
  • The purchasing and planning team works with numerous combinations of models, colors and sizes
  • The team sees the result of the collection only at the end of the season

Implementation requirements

Planning requires collection orders, size balances, supply terms and partner sales data. Allocation rules are checked against the lack of market sizes and end-of-season balances. Actual sales are marked separately from estimated demand.

Further development options

  • Getting sales data from more partners
  • Comparison of planner corrections with collection result

Frequently asked questions

Adapting the solution to your business