Optimal Purchaser


Retail Purchasing Software

Retalon’s Optimal Purchaser generates optimal suggested quantities based on a highly accurate demand forecast.

Supports Multi-Echelon & Vendor-to-Store Replenishment

Stores, Outlets, DCs, WHS, E-Commerce, Wholesale, and even Vendors can all be treated as ``Locations`` you can distribute to and/or from, managing all inventory as one omni-channel.

Optimize Warehouse Safety Stock Levels

Adds only necessary safety stock to protect from all the potential risks, such as demand volatility, variability of lead times, and vendor fill rate while maintaining desired service levels.

Manage by exceptions Approach

Instead of manually analyzing every SKU/Location combination, let Retalon’s solution do the hard work, providing you with ability to focus only on warnings and exceptions, based on user configured rules at any level in category and location hierarchies.

Smart Order Management

Prioritize & manage orders based on vendor minimums, logistics capacities, and other constraints.

Powered by Predictive Analytics

Retalon's Solution for Inventory Management 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.



Purchasing products from vendors or manufacturing your own products is a process where mistakes are most expensive and are difficult to recover once money is spent. An optimal decision requires accounting for a variety of factors, such as anticipated product demand across the whole chain, existing inventory, product popularity, planned assortment, risks involved, logistics preferences, vendor constraints, lead time, shipment schedules, and many others.




Retalon Predictive Analytic Platform equips Purchasing Solution with accurate SOQs (Suggested Order Quantities). It sums up the demand from all channels and all levels of business hierarchy, estimates risks associated with demand volatility, variability of lead time, accounts for the distribution of the existing inventory and desired inventory coverage, and the time it would take to deliver the inventory and start selling, to come up with the purchase orders that satisfy all the policies and business rules set by users. The business rules can tell the system how to behave in different problematic situations. For example: “If the Total Purchase Quantity doesn’t meet vendor MIN, move Future orders forward”. Users can also choose which orders should be approved automatically and when to configure warnings and alerts to review the resulting orders manually.

Things to consider when making a purchase:


1. The inventory you buy should ideally last from the time the shipment arrives until the following shipment arrival date (or in case of one-time buy it should last for the whole season). Going shorter would cause lost sales or expensive re-orders. Over-purchase will increase inventory cost, carrying cost and reduce available OTB budget for other purchases.


2. Depending on your situation, you should have flexibility to ship products either directly to stores, or down through multi-echelon hierarchy, such as 3PL-WHS-Regional DC-Store. In some situations, inventory needs to stay in a warehouse (re-packing, serialization, etc.) that impacts store ETA date; in other situations, warehouses or DCs are used just as cross-docks.


3. It is important to decide where the e-commerce inventory goes.


4. There are handfuls of products that contribute to most of your revenue and GM. You can’t afford being out-of-stock on these products. If your policy says that these products must be in-stock 98.5% of the time (which considered to be optimal level by most retailers), you have to know how much additional inventory (safety stock) is needed to protect you from all the unknowns in 98.5% of cases.


5. You don’t normally need to order extra (safety) stock for products that are not top contributors, even if vendors offer you a deal.


6. All the orders you generate should be prioritized based on benefits for your business. This allows you to know which orders can be canceled or delayed in constrained situations.

Get a personalized demo of Retalon’s Solution!