[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” width=”auto” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||” theme_builder_area=”post_content”][et_pb_text ul_item_indent=”30px” admin_label=”Text” _builder_version=”4.22.2″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]<\/p>\n
Suppose a customer browses the racks at your store during her lunch break. She finds a dress she likes, and it’s even available in her size. When she gets back to her desk, she\u2019s still thinking about the dress, so she figures she\u2019ll treat herself.<\/p>\n
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Next, she visits your online store, finds the item, and prepares to purchase it only to receive an \u201cout of stock\u201d notification. She\u2019ll wonder, \u201cHow can this be?! I just saw eight on the rack 15 minutes ago!\u201d<\/p>\n
Frustrated, shethey clicks away and forgets about the dress. Your business has just lost an easy sale. Why? Because it\u2019s being run on an inefficient inventory replenishment system.<\/p>\n
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Contents<\/p>\n
BONUS:<\/strong>\u00a0Before you read further,\u00a0our team has put together a simple\u00a0safety stock calculation excel\u00a0that helps you identify how much inventory to carry for each of your products.\u00a0Download safety stock calculator excel here.<\/a><\/p>\n What does replenishment mean? Inventory replenishment (also called stock replenishment) describes the process of getting new stock back to your pick area. Basically, you need to replace stock that you sold – replenish inventory. Keep in mind that your pick area encompasses more than a physical area in the warehouse — it also includes a \u201cvirtual pick area,\u201d so to speak.<\/p>\n What is Replenishment?<\/p>\n Consider the example of the woman trying to purchase a dress online –\u00a0 a dress she\u2019d just seen in the store a few minutes earlier. Even though the item was technically available, it wasn\u2019t in the virtual pick area where she could place an order.<\/p>\n Today, retailers are competing with inventory wizards like Amazon who have well-funded and well-oiled fulfillment operations. Losing easy sales like this one damages a retailer\u2019s profitability over time.<\/p>\n Fortunately, these kinds of lost sales can be avoided with a bulletproof inventory replenishment strategy. To create an effective retail replenishment strategy, companies need to commit to the process, which includes:<\/p>\n In 2020, retailers must focus on real time inventory data within their businesses.<\/p>\n What\u2019s the difference between real time data and static inventory data?<\/p>\n Static data requires inventory managers to manually update inventory information. A manager would look at the numbers from the last inventory count and adjust that figure based on the sales volume over the previous period.<\/p>\n In today\u2019s fast-moving, trillion-dollar ecommerce market<\/a>, retailers that use static inventory data are at an obvious disadvantage. For one thing, they\u2019re battling a time delay. For another, they don\u2019t have the groundwork necessary for an omnichannel inventory management strategy, which puts them steps behind their competition.<\/p>\n With an omnichannel<\/a> inventory management strategy, retailers can fulfill orders with inventory from anywhere in the business. For instance, in our earlier example, what likely happened is that the ecommerce site\u2019s order fulfillment software<\/a> was only tied to the inventory at one warehouse.<\/p>\n As a result, the order management system<\/a> didn\u2019t know that there were eight dresses available at one of the store locations.<\/p>\n If the company had been using an omnichannel inventory strategy, its system could have checked the inventory numbers of all other warehouses – and even store locations – and the sale would have been won.<\/p>\n Retailers and warehouses interested in embracing an omnichannel inventory management strategy don\u2019t need to upend their entire fulfillment infrastructure to accomplish it. They can implement cloud-based inventory management software<\/a> to gain access to accurate inventory data<\/a> from across their supply chain.<\/p>\n With real time inventory management software, retailers have the data they need to develop a continuous replenishment program.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.22.2″ _module_preset=”default” width=”auto” custom_margin=”15px|auto|15px|auto|false|false” custom_css_main_element=”.hbspt-form .legal-consent-container a {|| color: white !important;||}” locked=”off” global_colors_info=”{}” global_module=”26788″ theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.22.2″ _module_preset=”default” use_background_color_gradient=”on” background_color_gradient_stops=”#481a96 0%|#200741 100%” custom_padding=”15px|35px|15px|35px|true|true” border_radii=”on|10px|10px|10px|10px” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” header_3_text_color=”#ffffff” header_3_font_size=”30px” header_3_font_size_tablet=”30px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n [\/et_pb_text][et_pb_code _builder_version=”4.22.2″ _module_preset=”default” text_orientation=”center” global_colors_info=”{}” theme_builder_area=”post_content”]What Is Inventory Replenishment?<\/h2>\n
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Obtaining Access to Real Time Inventory Data<\/h2>\n
Request a free demo to learn more about Logiwa WMS.<\/h3>\n