Use AI to reduce inventories and operational costs without losing sales.
Use AI to reduce inventories and operational costs without losing sales.
Use AI to reduce inventories and operational costs without losing sales.
Retalon’s AI can help you accurately predict demand for every SKU (at every location), account for supply chain / vendor volatility, and generate cost-optimized POs precisely when re-orders need to be placed.
Overstocks and out-of-stocks are destroying your margins, and “min-max” rules-of-thumb are no longer cutting it. Combining the world’s most accurate demand forecast with intelligent automation allows you to know exactly what to order and when.
It’s more important than ever to account for volatility in supply chains. It’s not enough to know how much stock you need to have. You also need to know when to order to ensure supply chain disruptions don’t leave you without stock.
Retalon’s safety stock optimization software is part of a larger, unified inventory suite, tailor-made to simplify complex retailing.
Combine the world's most accurate forecast with intelligent automation to ensure you're not losing sales.
Automatically find opportunities to decrease inventory without
increasing risk.
Use AI to account for (and protect yourself from) volatility in demand and variability in lead times.
Easily set special rules to ensure that your best-performing products are protected and given additional leeway.
Integrate with any retail ERPs on the market, or even proprietary, homegrown solutions.
Deploy the solution in one fiscal quarter, and start seeing ROI in as quickly as
two quarters.
Experience a live demo with our experts to explore hidden opportunities and solve your biggest challenges.
Safety stock optimization is the process of calculating the right amount of buffer inventory for each product at each location, enough to protect against demand variability, forecast error, and supplier delays without tying up unnecessary capital in excess inventory. Instead of relying on static formulas or min-max thresholds that need constant manual upkeep, Retalon calculates optimal safety stock at the SKU-location level based on each product’s specific demand volatility, lead time variability, and business importance, and updates those recommendations as conditions change.
For example, a winter coat returned to a Miami store in spring would normally sit unsold until it’s marked down. Retalon would instead route it to a location still selling winterwear at full price, direct it to e-commerce fulfillment, or send it to liquidation, whichever recovers the most margin. The result is less unnecessary transportation and faster return to saleable inventory.
Safety stock optimization software helps retailers reduce inventory carrying costs, prevent lost sales from stockouts, and eliminate the manual work of maintaining min-max thresholds across thousands of SKUs. Because AI accounts for demand volatility and lead time variability at the SKU-location level, retailers can hold less total inventory while improving availability on the products that matter most. Retalon also lets retailers set additional protection rules for best-performing or strategically important products, so the optimization reflects business priorities as well as statistical risk.
Traditional safety stock formulas use expected demand, lead time variability, forecast error, and a target service level to calculate a buffer quantity. These formulas can be applied product by product, but they rely on fixed parameters and simplified assumptions that go stale as conditions shift, leaving planners to update them by hand across thousands of SKUs. AI-driven safety stock optimization accounts for changing demand patterns and lead time variability at the SKU-location level and updates recommendations as conditions change, so buffers stay right-sized instead of being set once and forgotten.
Min-max rules rely on fixed inventory thresholds that don’t adjust automatically as demand, seasonality, lead times, or product performance change. Retailers can update them manually, but maintaining accurate thresholds across thousands of SKU-location combinations is time-consuming, and settings drift out of date between updates, leaving slow items overstocked and fast ones underprotected. Retalon replaces static thresholds with dynamic recommendations that adjust to each product’s demand and risk profile, reducing inventory carrying costs and excess inventory without increasing stockout risk.
Longer or less predictable lead times increase the risk that stock runs out before replenishment arrives. Knowing how much to hold is only half the problem; knowing when to reorder is the other half. Retalon accounts for demand risk and vendor lead time variability when calculating safety stock, holding more protection where supply is unreliable and less where replenishment is predictable, and helps determine when reorders need to be placed so supply disruptions don’t leave shelves empty. This protects availability without carrying unnecessary inventory.
Yes. Retailers can often reduce total safety stock without sacrificing availability by putting protection where it is actually needed. Some products may carry more buffer than their demand and supply variability justify, while high-demand or less predictable items may be underprotected. By right-sizing buffers at the SKU-location level, retailers can free up capital and space from products that need less protection while maintaining greater protection where the risk warrants it.
Cycle stock is the inventory purchased to meet expected demand between replenishment orders. Safety stock is the additional buffer held to absorb the unexpected, including demand spikes, forecast error, and supplier delays. Because both depend on demand forecasts, they should be optimized together rather than independently. Retalon uses the same AI-driven demand forecast to optimize purchasing, replenishment, and safety stock, so each inventory decision draws from a consistent view of future demand.
Retalon’s safety stock optimization can be deployed within one fiscal quarter, depending on solution scope, data readiness, and integration requirements. Retailers can begin seeing ROI in as little as two quarters as excess inventory is reduced and availability improves.