Initial and In-Season Allocation Optimization

Allocate your inventory in anticipation of omni-channel demand that could be fulfilled from every possible source

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Allocation Optimization

An advanced allocation optimization solution means much more than meeting customer demand at a store or regional level. Solution-based service-level frameworks to manage store inventories cannot capture the omni-channel complexity successfully. Initial and in-season allocation decisions should position inventory optimally anticipating offline sales and omni-channel customers’ fulfillment needs – to be close to the omni-channel customers without carrying excessive inventory.

Our Allocation Optimization solution makes products readily available at stores for fast pick up by or delivery to customers while avoiding overflow inventory to stores. It allocates inventory of your short-life products to stores, mini-DC’s and hub stores in anticipation of omni-channel demand so that you can fulfill from every possible source.

By sending the right amount of inventory to your stores, you reduce left-over risks at stores and early stockout risks at distribution centers. As a result of dynamic and smart positioning of inventory, you get higher sell-through and reduce overall fulfillment costs.

Why use Allocation Optimization?

Make profit-optimized allocation decisions over the course of the season

Gain a full-season perspective to enable more accurate and timely allocations
Make profit-optimized inventory decisions balancing lost-sales vs left-over risk at stores
Avoid unnecessary markdowns.

Use omni-channel demand and omni-channel fulfillment as your allocation backbone

Monitor and anticipate omni-channel fulfillment from stores
Fulfill your omni-channel customers demand by allocating inventory of the short-life products to stores, mini-DCs and hub stores.

Benefit from robust, allocation-specific forecasts

Take advantage of highly accurate AI-powered forecasts to anticipate customer demand—even for new items with a unique combination of attributes
Use demand probability with highest predicted value for each and every potential item allocation
Optimize inventory levels, maximize sales and minimize stranded inventory costs while improving your merchandise planning decisions.

Maximize your inventory productivity

Gain future order and fulfillment visibility across the season with dynamic inventory optimization
Protect the optimal amount of inventory at the DC to minimize fulfillment costs and support fast-selling stores.

Maximize season sell-through

Use exception alerts during the season to detect supply and demand mismatches
Use Markdown Optimization to explore the impact of different markdown depth and timing scenarios
Reduce review and adjustment time while improving season performance using configurable thresholds and smart alerts.

Key Benefits

Reduces Fulfillment Costs with Better Allocation Predicting Omni-channel Demand

Decreases Lost Sales and Increases Customer Satisfaction at the Stores

Fits into Your Operating Model and Ecommerce Constraints

Considers Your Channel Strategy and Customer Expectations

Improved Forecast Accuracy Using Advanced AI Techniques

Computes Expected Benefit Probability for Every Unit Allocation

Customer Testimonials

“It was clear that with the help of Invent Analytics’ Allocation Optimization we would improve our planning accuracy while also streamlining our processes. Some stores have seen double-digit revenue uplift. If I had to make the decision of choosing Invent Analytics again, I would do it, no doubt!”
Ozlem Celikkanat, Merchandising and Supply Chain Director, Ayaydin-Miroglio Group
“Our Marks&Spencer stores have seen incredible improvement in sales. Invent Analytics’ Allocation Optimization solution is designed maximize sales while minimizing stranded inventory.”
Batur Can, General Manager, FIBA Retail Group
"Invent Analytics demonstrated a new technology and science that can drive financial results. Their system was smart and flexible, allowing users to simulate results before execution. They were the only provider capable of delivering on our priorities in the desired timeframe."
John Jarrett, VP of Merchant System Operations, Academy Sports + Outdoors
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"With Invent Analytics, we have achieved remarkable business results. Invent Analytics delivers speed to value, understands our operational constraints, and uniquely tailors their inventory optimization solutions to meet our needs."
Sinan Sefai, Chief Sourcing and Supply Chain Officer, Mavi
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"Invent Analytics' solutions enable us to achieve the most profitable inventory levels using a sophisticated economic model that analyzes demand patterns, inventory costs, margins, and other parameters."
Hakan Ugur, Chief Merchandising Officer, FLO
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