Forecasting, Allocation & Replenishment

As product nears delivery, optimizing best outcomes require adjusting the plan to market dynamics and delivery revisions.

Product requires high in-stock positions? Replenish each store and distribution center to maintain service levels and customer satisfaction. Sales not unfolding exactly according to plan? Simulate price and promotion activities to determine best sales and margin outcomes, and execute your revised strategies. On-hand product levels need honing by store type? Improve allocation with advanced insights.  If you are heading towards the end of season with stock levels out of projections, determine clearing strategies and execute the best and most profitable alternatives.

With the TXT Retail Solution, you can combine statistical forecasts with product life cycle curves to zero in on exactly those products and channels that require course correction. Using all of the decisions and information made during the preseason planning processes, you can execute the assortment plan, use precise allocation to push floorsets to stores, pull additional product to locations based on sales and forecasts, and as end of season approaches, push remaining products to those locations best able to maximize margins and clear inventory balances.

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Forecasting, Allocation & Replenishment
  • Demand Forecasting and Planning

    The right forecast for the right product at the right time? In-season management requires an accurate prediction of the future as the basis of any merchandising decision. Different products behave with different purchase velocity and quantity variability. Making potentially complex scenarios simple to manage, TXT Retail features an automated forecast algorithm selection and forecast self-adjustment. Based on the type of product selected, the best forecast method will be utilized. Also, as clean data management is essential to accuracy, in conjunction with sophisticated forecast routines, TXT offers a variety of productive data management utilities that support new store, new product and promotional adjustment capabilities as the first step to an accurate demand plan.

  • Allocation

    With a thorough plan in place, the last step of the Assortment/Item plan contributes to the initial allocation, which executes the plans. With TXT Retail, you can create effect size level distributions, adjust the assortment plan for recent trends, and elect distribution strategies for hold backs for subsequent re-allocations. You can review the proposed allocations in the context of constraints and capacities prior to execution, as well as create the optimal "push" to stores and channels. As sales progress, additional allocations can push products to the optimum locations, build inventory for peaks or promotions and, at end of season, clear inventory to the best margin outcomes.

  • Multi-echelon Replenishment

    For some products, in stock position is best maintained through frequent delivery from warehouse to store, or vendor to the fulfillment channel. Utilizing the most accurate forecasts, determine the right replenishment whether to maintain an optimized inventory flow through the distribution channel from supplier to DC, to regional DC to stores or fulfillment centers. The TXT Retail solution leverages all the business decisions and strategies that have been set up throughout the plan, so work does not have to be repeated to create replenishment parameters.

Key Functionality

  • Native multi-dimensional attribute-based planning

  • Dynamic Size Split: Based on size curve libraries, work or forecast at manageable levels of detail while the system performs the low level SKU/location break outs

  • Advanced What-if, with multiple scenarios, ability to identify new opportunities around changes in product mix, potential cost reductions and effects on margins

  • Workflow management, possibility to design sequential, parallel, nested workflows

  • Concurrent Planning and Performance Management, with KPIs

The Benefits

  • Increased Sales, ability to respond to daily sales and inventory patterns for each SKU, identify stores that are performing well and need to be fed with additional stock to maximize sales

  • Higher Margins, improved sales at full retail price. By avoiding the need for markdowns to clear redundant inventory, more reward for the same initial investment

  • Reduced Store Transfer Costs, products allocated in their preferred size curve, meaning the stores can spend less time shipping and more time selling

  • Preserve Brand Presentation, users get a broad view of how the whole assortment is being distributed, this allows constant alignment with corporate brand strategies