Planning and Allocation versus Replenishment: When Is Each the Best Strategy?

Assortment optimization, pricing decisions, and promotional activity fall flat if a product is not available for purchase. Out-of-stocks, overstocks, and markdowns drive down already strained profit margins. Replenishment, however, maximizes sales while minimizing inventory expense. By understanding replenishment, and planning and allocation, enterprise can determine the best strategies for addressing forecasting and inventory concerns, and improve profit margins.
  • Written By:
  • Published On:
  • (Originally Published On:) )
 
comments powered by Disqus


Featured publications:

11 Criteria for Selecting the Best ERP System Replacement

An enterprise resource planning (ERP) system is your information backbone, reaching into all areas of your business and value chain. That’s why replacing it can open unlimited business opportunities. The cornerstone of this effort is finding the right partner. And since your long-term business strategy will shape your selection, it’s critical that your ERP provider be part of your vision.
  • Written By:
  • Published On:

TEC 2014 HCM Buyer’s Guide for Medium and Large Enterprises

  • Source:
How do you treat humans as capital? The concept of human capital depends on its two parts: what we understand by "human" and what defines something as "capital." The supporting technology then is a shape-giving agent to what human capital management (HCM) or human resources (HR) departments can become.

This buyer’s guide examines high-level features offered by HCM technology vendors. In addition, the guide looks at what to consider when deciding between full suite and best-of-breed software solutions and explores new niche-oriented technologies. You'll also find articles on contemporary leadership models, talent management versus workforce management, and the role of enterprise learning in a company’s growth.

TEC 2014 HCM Buyer’s Guide for Medium and Large Enterprises

  • Source:
How do you treat humans as capital? The concept of human capital depends on its two parts: what we understand by "human" and what defines something as "capital." The supporting technology then is a shape-giving agent to what human capital management (HCM) or human resources (HR) departments can become.

This buyer’s guide examines high-level features offered by HCM technology vendors. In addition, the guide looks at what to consider when deciding between full suite and best-of-breed software solutions and explores new niche-oriented technologies. You'll also find articles on contemporary leadership models, talent management versus workforce management, and the role of enterprise learning in a company’s growth.

You may also be interested in these related documents:

6 Steps for Linking Corporate Strategy to the Budget

Ask any three people in an organization why they budget and you’ll get three different answers. But no one says they budget in order to direct the way in which their organization will achieve its strategic goals—the intended purpose of the budget. For budgeting to become the relevant process it was meant to be, this gap must be fixed.
  • Written By:
  • Published On:

Pricing and Revenue Optimization: A Manufacturing Perspective

Pricing and revenue optimization is the process of improving business margins by either increasing unit prices or increasing gross revenues. This type of optimization is fast being recognized as having the capability to help businesses grow margins significantly. In fact, studies have shown that it can add a 15 to 50 percent incremental margin to the bottom line.
  • Written By:
  • Published On:

Replenishment: What Is It exactly and Why Is It Important?

Replenishment is an area within operations where retailers can find a competitive edge. Excelling at replenishment enables implementation of promotional, pricing, and assortment strategies. Also, profit can be gained by minimizing inventory levels and reducing lost sales. This increases time for analysis and special projects, as it’s no longer necessary to fight the fires of overstock and out of stocks.
  • Written By:
  • Published On: