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Region Utilization

Summary

IRIS Regional Utilization (RU) module is a novel solution to intelligently split inventory across multiple warehouses for e-commerce.

This module optimally allocates inventory to all warehouses in proportion to the regional demand. This will ensure that demand is fulfilled by the nearest ideal warehouse thereby leading to

  • Higher regional utilization, resulting in better visibility and higher conversion on Marketplaces
  • Significant savings on logistics costs
  • Faster deliveries
  • Lower rate of returns

These are key metrics to drive profitability and customer experience respectively.

Warehouses have capacity & cover constraints and allocations by this module minimizes inter warehouse redistribution cost of the inventory leading to maximum RU.

This module’s algorithms consider many factors to arrive at an optimal output:

  • Regional warehouse capacity (and hence warehouse size also)
  • Warehouse-SKU ranking, i.e. which SKUs perform better at which regional warehouse?
  • This uses a very sophisticated set of statistical analysis
  • Mirrors regional demand
  • Recent sales trend
  • Key size continuity at a regional warehouse
  • Maintains cover days (days on hand)
  • For new SKUs, the warehouse distribution happens based on attribute group sales performance (mapping these new SKUs to sister SKUs of same brand, category, subcategory, gender, MRP)

Algo Parameters

Analysis DaysNumber of days of sales to be considered for RU analysis from the last sale day
Cover Days (Days on Hand)Number of days of inventory cover to be maintained at a regional warehouse
Minimum QuantitySKUs selling beyond this quantity in the analysis period will be considered for analysis
Depth IncrementFlag to completely fill the capacity of your regional warehouses

File Formats

Please see the File Formats page for file formats

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