Smart Replenishment

What is smart replenishment?

Smart replenishment is the ‘new’ approach to space management. Imagine advanced data analytics, insights into product behaviour, demand forecasts and intelligent algorithms combined with the latest technologies, such as AI, machine learning and cloud computing – et voilà, you have smart replenishment.

Instead of wasting time with endless Excel spreadsheets, Smart Replenishment does the hard work for you. Smart Replenishment makes millions of micro-decisions every day, dynamically adjusting inventory targets and automatically sending replenishments (or deciding not to send replenishments when they are not necessary).

Why is this better than traditional replenishment?

Conventional replenishment, also known as static replenishment or 1-to-1 replenishment, is simple: you sell one item, you replenish one item. But that’s not ideal. Sometimes you need to replenish more, or not replenish at all. But making these decisions manually for every option, every size and every colour is impossible. Smart Replenishment makes these decisions for you!

The result?

• Time savings: Focus on other important tasks while the solution takes care of the details.
• Higher sales: Always the right product, in the right place, at the right price and at the right time.
• Less excess inventory: Always enough, but never too much.

But is this really a new concept? Not for us. At Chainbalance, we are true replenishment experts and have been perfecting our “Smart Supply” solution for twenty years, improving it every quarter to offer you the best possible solution.

Now let’s dive into the details of Smart Replenishment.

1. How does Smart Replenishment work?

Smart Replenishment relies on real-time data, intelligent algorithms and state-of-the-art technologies to automate space management. Here is a breakdown:

Data collection and integration

Smart replenishment begins with capturing data from various sources: historical and real-time sales, current inventory levels, on-hand stock, promotions, seasonal patterns and product behaviour. This comprehensive data integration provides a 360-degree view of inventory requirements.

Our system integrates seamlessly with your ERP system, ensuring a smooth implementation. Would you like to learn more about our integration process? Read more in this article: 
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Demand forecast

Smart Supply analyses past trends and predicts future demand with impressive accuracy. This ensures optimal targets for better sales rates.

Automated replenishment orders

The solution makes millions of micro-decisions every day, calculates replenishment requirements and automatically places orders at the perfect time. No more guesswork – always have the right product in the right place at the right time.

Dynamic decision-making

The algorithm adjusts target stock levels as needed. If Smart Supply detects higher demand, it increases target stock levels to ensure optimal sell-through. If it detects lower demand, it reduces target stock levels to avoid excess inventory.

Continuous optimisation

The solution constantly monitors sales and adjusts inventory targets in real time, allowing stock levels to remain flexible and respond to changing market demand.

2. Why is smart replenishment a turning point for the fashion industry?

The fashion industry faces unique challenges such as seasonal trends, rapidly changing customer demand and unpredictable needs. Here’s how Smart Replenishment solves these problems:

Reduction of excess inventory and waste: Excess inventory is a major problem for fashion brands and their partners. Smart Replenishment minimises this problem by ensuring that inventory levels match actual demand and that only items that are likely to sell are replenished.

Increased customer satisfaction: When the right products are available at the right time, customers are less likely to experience frustrating situations where items are out of stock.

Improved operational efficiency: By automating the replenishment process, the team can focus on strategic tasks instead of manual work, while retailers spend less time on the B2B portal. Implementing Smart Replenishment can save 80% of manual effort.

Better sales performance: Maintaining the right inventory levels affects sales, reduces revenue losses and maximises profits.

3. Key features of our Smart Replenishment solution

In addition to smart replenishment, our SaaS solution offers a comprehensive range of merchandise management modules that cover both pre-season and in-season management:

• Reporting: Improve transparency with detailed insights, KPIs, reports, branch and product insights.
• Smart PO Forecast: Genaue Bestellprognose für NOS-Artikel. Demnächst auch für Modeartikel verfügbar.
• Smart PO Forecast: Accurate order forecasting for NOS items. Soon also available for fashion items.
• Smart Event Planning: Plan events according to your needs without disrupting day-to-day business and with delivery after the event has ended.
• Smart Order Proposal: Automatically send order proposals to retailers, including detailed product insights.
• Smart Recommendations: Receive suggestions for missing bestsellers, missing sizes or slow-moving products to optimise your store’s product range.
• Smart store-to-store transfer: Send missing products from one branch to another. Our AI-based model finds the best transfer combinations by weighing up the costs against the sales potential and CO2 emissions and determining the fewest but most efficient transfers.

4. Why Chainbalance Smart Replenishment?

Of course, there are many other replenishment solutions on the market. But why is Chainbalance Smart Replenishment the best?

Get started with Smart Replenishment!

Ready to revolutionise your space management? Learn more about how our Smart Replenishment solution can transform your business by scheduling a no-obligation consultation with our experts.