At a glance: Lenskart achieved 23% higher store revenue, 28% higher per-piece revenue, and improved sell-through using Increff’s automated allocation and replenishment module for JIT and OTC merchandise.
What Is This Case Study About?
This case study explains how Lenskart optimized its merchandising operations using Increff’s automated allocation and replenishment system to manage both just-in-time (JIT) and over-the-counter (OTC) merchandise efficiently.
Client Overview
- Brand: Lenskart
- Industry: Eyewear Retail
- Operations: Large centralized network across India and other markets
- Key Focus: Allocation and replenishment for JIT and OTC merchandise
- Challenge: Managing centralized operations with automated planning and execution
Challenges Faced: Why Allocation and Planning Needed Automation
- Need to operate centrally across a large retail network
- Manual processes limiting efficiency in pre-season and in-season planning
- Difficulty in managing both JIT and OTC merchandise simultaneously
- Gaps in demand fulfillment leading to missed sales opportunities
Increff’s Solution: Automated Allocation and Replenishment System
Increff implemented its merchandising solution with JIT capability to streamline planning and execution.
Explore Increff’s Retail Merchandising and Assortment Planning Software
Demand-Based Assortment Planning
- Created store-wise assortment plans based on local demand
- Assigned relevant SKUs to meet store-level requirements
Smart Attribute-Based Planning
- Identified key attribute groups based on customer decision patterns
- Enabled replacement of out-of-stock styles within the same attribute group
Automated Replenishment and Allocation
- Generated quantity recommendations using True ROS
- Automated daily replenishment to avoid stockouts
- Allocated new merchandise dynamically based on demand
Store-Style Ranking Algorithms
- Placed the right style in the right store based on selling potential
- Optimized inventory movement across stores
Results: Measurable Impact Delivered by Increff
Even with less merchandise exposed, the system delivered higher ROS and margins.
Key Outcomes Summary
- Improved store revenue with optimized allocation
- Higher per-product profitability
- Better inventory utilization with lower exposure
- Automated replenishment reducing manual effort
- Improved sell-through and stock availability
Frequently Asked Questions (FAQ)
What is allocation and replenishment in retail?
It is the process of distributing inventory across stores and replenishing stock based on demand patterns.
How does JIT merchandising improve retail operations?
JIT ensures inventory is replenished only when needed, reducing excess stock and improving efficiency.
How did Increff help Lenskart?
Increff automated allocation and replenishment using demand-driven algorithms and store-level planning.
What is True ROS in retail?
True Rate of Sale measures actual demand by correcting for stockouts.
Why is attribute-based assortment planning important?
It ensures similar products can replace each other, improving availability and sales.
Which retailers benefit from allocation and replenishment systems?
Retailers with large store networks and diverse product categories benefit the most.
Why Increff for Allocation and Replenishment?
- Demand-driven allocation and replenishment
- Automated planning for JIT and OTC merchandise
- Store-level optimization using data
- Improved inventory efficiency and profitability