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Success with Auto Replenishment

Increase sales through automatic scheduling (Vendor Managed Inventory) while working more efficiently and reducing inventories. With the right system and a suitable process, this works.

Oct 2022
Umsatz steigern, Increase sales, Reduce costs, Orders
Auto Replenishment

Increase revenue, efficient processes and less stock

Success with Auto Replenishment

Think about cutting down on administrative time, as well as increasing potential revenues. Doesn’t this sound like an ideal situation? Let us discuss how this is possible by utilizing algorithms in auto replenishment tools and systems.

Concept of automatic scheduling

In short, the concept of auto replenishment utilizes smart algorithms that are based on the collection of realtime data in the marketplace as well as metrics and data from internal sources within your company, and then anticipates real demand. This can then provide useful information to allow ordering of raw materials in required amounts and suggest necessary inventory levels.

Let’s take a deeper look at what auto replenishment does

This inventory optimization tool can help to predict necessary inventory according to historical required stock, as well as general historical trends in the market. The algorithm can collect data such as: how much inventory there is, time it takes for raw material suppliers to deliver, how much is generally sold in a day, stock that has already been ordered, stock that is already in transit to a customer etc.

Data like this can help give the tool the information it needs to generate suggested inventory levels to have adequate stock on hand for customers as well as even raw material levels necessary for production. Some tools even go as far as preparing suggested purchase orders for the purchasing department to analyze and sign off on, reflecting the optimal raw material inventory level.

Essentially, in the time it would take a person to sit and analyze all these factors of the supply chain and comb through data that would optimize this, the tool has already used its algorithm to consider all data and suggest the ideal supply for the entire chain.

Here’s why you need to utilize

  • Increased Revenue – when overstocks and understocks are limited revenues are maximized as less sales and discounts are used to get rid of the overstock, and there is less loss of sales due to understocking, as well as return on capital in inventory increases.

  • Staff Optimization – staff saves time on manual labor for inventory management as the tool can do it faster and more efficiently, and their attention can be redirected into more value and revenue generating tasks.

  • Customer Loyalty Strengthens – any customer or business partner whose needs are met more consistently (as opposed to with understocks) will be more incentivized to be a repeat customer or continued partner.

  • Higher Efficiency & Effectiveness – more informed decisions backed by realtime data the correct stock that is desired by the customer is more likely to be provided at the right time. This will not only free up warehouse space but also save time and boost efficiency.

What better way to maximize your revenues than giving your customers exactly what they want? Supply your distributors with exactly what they need to satisfy the end consumers and save yourself from the wastage and stress of overstocking or understocking. Stock the products demanded in their required quantities by utilizing automatic scheduling tools. When needs are met, they are likely to keep coming back for more!

#automation #efficiency #RevenueGeneration #AutomatedReplenishment #Algorithms


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Peter Krebs

Director Customer Success