Automated Allocation Replenishment Module for JIT and OTC merchandise

Lenskart, the tech-driven company that revolutionized the Indian eyewear industry, was looking for a merchandise allocation platform that allows them to:

  • Operate centrally with a large network of retailers in India and other potential markets
  • Automate daily tasks, including pre-season and in-season planning and execution for both just-in-time (JIT) and over-the-counter (OTC) merchandise.

Increff merchandising solution, with its new feature of managing JIT merchandise, was integrated to handle multiple modes of operation for serving customers – from the store, the central warehouse, or the local distribution centers.


  • Demand-based assortment planning and allocation to establish a granular store-wise assortment plan and assign relevant SKUs to meet local demand
  • Avoid loss in sales opportunities by filling the gap in demand requirement based on attribute performance
  • Generate quantity recommendations at the store level based on True ROS(™) for OTC (Over-the-counter) merchandise to avoid any potential stockouts


As it was a critical challenge, the brand started considering multiple global solution providers and big industry leaders. Increff proposed a POC (Proof-of-Concept) of its merchandising tool so the client could experience the impact before it finalizes on which tool to implement, across all stores. Within 4 weeks of implementation, Lenskart experienced clear improvements in ROS, store performance, and inventory accuracy by addressing some critical pain points like:

  • Attribute Grouping -Identifying the right set of attributes for each category, with a hierarchy as per the customer decision tree. Automating the creation of attribute groups to look for replacement styles within the same group in case of stock outs and roll-ups. 
  • Smart Assortment Planning – Generating an assortment plan for each store at an attribute level based on historical data by correcting for stockouts and identifying the available gap in each attribute group at a store to allocate new merchandise. 
  • Replenishment/ Allocation based on store-style ranking algorithms – Placing the right style at the right store based on its estimated selling potential. Automating replenishment daily to fulfill the available gap by restocking fast-moving merchandise and allocating fresh merchandise to stores as a replacement for stockouts. 

Business benefits:

An A/B test was conducted to demonstrate the benefits of implementing the Increff merchandising Allocation/Replenishment module.

  • A & B sets have 90 identical stores each

Impact observed (in 4 weeks period post-execution):

ParametersSet A (With Increff Iris X) Set B (Without Increff Iris X)
Store revenue performance23% higher than Set B
Per piece revenue 28% higher than Set B
Merchandise sold53% of dispatched merchandise 50% of dispatched merchandise

*Even with less merchandise exposed, our merchandising tool was able to show a higher ROS and margins. 

Author: Surya M