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Distribution Module

Summary

Sending right inventory to right stores is just too critical to get great sales. Where most companies go wrong is to distribute inventory as per their Store Level Buy Plan. Planning happens many months before the new season starts and by that time the demographics and trends change.

The Distribution Module can analyze the last few months sales data and suggest you an optimal store distribution. This module does all the following amazing things for you automatically.

  • Allocation for new season
  • Replenishment for in-season.
  • Replacement – Sending a replacement style to store (from the same cluster), in case there isn’t enough stock to replenish from warehouse.
  • Options Increment – Increase the number of options in the stores, to give more variety to choose from.
  • Depth Increment – Increase the quantity in the stores, if there is enough space in it.
  • Fairness – Apply intelligent distribution, so that already smaller or lesser performing stores do not get starved of good inventory.

This module’s algorithms consider many factors (at a store level) to arrive at an optimal output:

  • Store Planogram (and hence store size also)
  • Store-style ranking, i.e. which styles perform better at which stores?
    • This uses a very sophisticated set of statistical analysis.
  • Sales discounting on styles
  • Right size ratios
  • Reduction of broken styles at stores
  • Size continuity

What it churns out is the following output:

Given past Sales Data, Analysis Period and a Store Planogram; how should I distribute inventory from my warehouse to the stores?

Algo Parameters

Analysis Start Date Only data between start-date and end-date (both dates included) will be considered for analysis, for up to 1 year. You can also use to analyze data for last season also
<Analysis End Date Only data between start-date and end-date (both dates included) will be considered for analysis, for up to 1 year. You can also use to analyze data for last season also
Max Liquidation Cleanup Cutoff % How much revenue % you are willing to forgo (at a partner+category level) while doing liquidation sales data cleanup. For e.g., in EBO+Jeans, remove my bottom 10% revenue sales data. . Keeping it at 0% does not clean any sales data.
Depth Increment Whether you want to send more inventory (by one size-set) in the already distributed styles, if there is space left in the stores

Required Modules

You must have run the following modules, before running this module

  • Masters

File Formats

Please see the File Formats page for file formats

Important Notes

To perform a new-season allocation, based on past season analysis, please set the Start-Date and End-Date in to the last season.To perform an allocation, replenishment, replacement, based on past few months analysis, please set the Start-Date and End-Date accordingly. This is typically used for in-season distribution. It is advisable to wait for at least 1 month in-season, before running in-season allocation

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