Smart Allocation

Optimize allocation across your entire omni-channel retail business with one click. Retalon’s Smart Allocation solution automatically accounts for performance of each product/location, desired assortment distribution, existing terminal stock, and a wide range of other business-specific factors such as size patterns, MINs, and case/pack requirements.

Optimize Allocation Plan Proactively

Pre-Allocate during the planning process & execute scenario when purchase order arrives

OPTIMALLY DISTRIBUTE CONSTRANED INVENTORY

Automatically determine the optimal locations to allocate merchandise in cases of constraint inventory, based on their performance, assortment distribution, size patterns, & more.

Intuitive & Versatile Allocation

Allocate some categories at SKU level & others at style/color level.

Define your Priorities

Flexible choice of store/channel priorities

Powered by Predictive Analytics

Retalon's planning solution is powered by predictive analytics to provide accurate demand forecasts

End-to-End Integration

All Retalon solutions are fully integrated on a common predictive analytics platform.

RETAIL CHALLENGE

 

In the first case, it is necessary to determine the optimal quantities for each location without any knowledge on the previous product performance. How will the product be accepted by customers in different geo-demographic areas? If you ship too much, you’ll increase your risk of markdowns to clear out the excess. Almost as bad, if not worse, if you don’t send enough to the right locations, you’ll put sales at risk.

 

In the second case, trade-offs have to be made to optimally distribute the scarce inventory to optimize the performance and assortment, given the existing inventory distribution.

Other questions that require answering during the allocation process are:

  • Will a product sell similar to an existing product or a predecessor?
  • If a style is available in several colors, then what is the distribution of the color palette?
  • How to tie the initial allocation in with the optimal size patterns and pre-defined packs?

 

RETALON SOLUTION

 

The Retalon Allocation System assists users in placing the products (Style/Color/Sizes) into the right locations and in the right quantities to optimally address the challenges described above.
The system allows you to create allocation scenarios that cannot be handled through an auto-replenishment process. The workbook with the scenario results specifies what quantities of each product should be allocated to what locations and in what order.

Allocation is a process that requires making decisions usually:

1. when a product is allocated for the first time (no sales history) and/or
2. in a constraint inventory situation (there is no enough inventory available to satisfy the demand of all locations)
3. for a one-time drop of a product to some or all stores

Retalon Smart Allocation System Features:

 

If each product you allocate is unique, there are only a few things to consider, such as expected SKU performance in different locations, assortment minimums, capacities, and available quantity to allocate. When, however, allocation is done at a style/color level, additional complexity is added by the need to satisfy different size distribution patterns in different locations and different inventory availability for different sizes, often purchased from vendor in specific pre-packs as well as minimum at style color level for each location.

 

To avoid overwhelming stores with fringe sizes, a smart allocation system allows you to process allocation from a style level, finding the optimal combinations of colors and sizes for each location. If each location gets each fringe size in some color and each color will be represented by some fringe size, the overall amount of not-so-well-performing inventory will be significantly lower.

Get a personalized demo of Retalon’s Solution!