📌At a glance: A leading denim brand increased revenue by 22%, reduced working capital by 18%, and improved inventory health while saving 80% of allocation effort using Increff’s distributed inventory optimization module.
What Is This Case Study About?
This case study highlights how a leading denim brand optimized its inventory distribution across stores and warehouses using Increff’s distributed inventory optimization module. The solution enabled demand-driven allocation, improved stock availability, and reduced inefficiencies across the supply chain.
Client Overview
- Brand: Leading Denim Wear Brand (Masked)
- Industry: Fashion Retail
- Store Network: 750+ retail outlets
- Channels: D2C website + 6 major marketplaces
- Key Focus: Inventory distribution and allocation optimization
Challenges Faced: Why Inventory Distribution Was Inefficient
The brand faced multiple issues due to inaccurate inventory distribution:
- Excess Inventory in Some Locations: Stock accumulation in warehouses and stores led to blocked working capital and inefficiencies.
- Missed Sales Opportunities: Lack of stock in high-demand locations resulted in lost sales.
- Manual Allocation Limitations: Inventory allocation lacked automation, leading to human errors and inefficiencies.
- Lack of Demand-Based Distribution: Inability to analyze local demand accurately and distribute stock accordingly across stores and warehouses.
Increff’s Solution: Distributed Inventory Optimization for Smarter Allocation
Increff implemented its Merchandise Inventory optimisation module to enable demand-driven inventory allocation across the network.
Explore Increff’s Retail Merchandising and Planning Software
Demand-Based Inventory Distribution
- Analyzed true customer demand at pin code level
- Suggested intelligent inventory split across warehouses and stores
- Ensured stock was placed closer to demand centers for faster fulfillment
ROS-Based Dynamic Allocation
- Allocated inventory based on rate of sale at store and SKU level
- Corrected issues like stock unavailability, liquidation, and overstocking
- Improved overall inventory balance across the network
Intelligent Allocation Framework
- Considered demand drivers like seasonality, recency, festivities, and stock levels
- Factored in open orders and goods in transit
- Integrated business constraints like store capacity and revenue targets
New Style and Assortment Optimization
- Distributed new styles based on performance of similar products
- Used 2D store-style ranking to optimize each unit’s selling potential
- Ensured better assortment alignment at store level
Automated Decision-Making
- Eliminated manual allocation processes through automation
- Created intelligent system-driven inputs instead of manual rules
- Enabled scalable and consistent allocation across the network
Results: Measurable Impact Delivered by Increff
“Increff’s allocation and replenishment module significantly improved supply chain efficiency and revenue performance with a 22% growth.”
Key Outcomes Summary
- Improved inventory distribution across stores and warehouses
- Increased revenue through better stock placement
- Reduced working capital through optimized inventory holding
- Improved inventory health and reduced stock fragmentation
- Automated allocation processes reducing manual effort
- Faster fulfillment through demand-based stock positioning
Frequently Asked Questions (FAQ)
What is distributed inventory optimization?
Distributed inventory optimization ensures inventory is allocated across multiple warehouses and stores based on demand to maximize efficiency and sales.
How does demand-based allocation improve retail performance?
It ensures stock is placed where demand exists, reducing stockouts and overstock situations.
How did Increff improve inventory distribution for this brand?
Increff used algorithms to analyze demand at a granular level and automate allocation decisions across the network.
What is ROS-based allocation?
ROS-based allocation distributes inventory based on rate of sale to ensure high-performing products are adequately stocked.
How does inventory optimization reduce working capital?
By reducing excess inventory and improving stock movement, it frees up capital tied in unsold goods.
Which retailers benefit most from distributed inventory optimization?
Retailers with multi-store and multi-warehouse networks benefit the most from such solutions.
Why Increff for Inventory Optimization?
Increff helps retailers build efficient supply chains with:
- Demand-driven inventory allocation
- Intelligent distribution across warehouses and stores
- Automated decision-making at scale
- Improved inventory health and utilization
- Proven impact on revenue and operational efficiency
Ready to Optimize Your Inventory Distribution?
Improve inventory efficiency and unlock growth with Increff’s distributed inventory optimization solution.
👉 Book a demo with Increff today