Inside Logistics

Dynamic allocation and replenishment

Logility allocation process allows network-wide multi-source distribution to omni-channel locations


March 16, 2018
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ATLANTA – Logility, Inc., a provider of advanced retail planning and collaborative supply chain optimization solutions, introduced Dynamic Allocation and Replenishment, a unique new capability within Logility Voyager Retail Optimization.

Retailers with multiple distribution centres now have the flexibility to automatically allocate and replenish merchandise to each store location or channel from any combination of distribution centers to boost inventory velocity and support each location’s ability to meet financial plans.

Many retailers have a time-consuming manual process that statically defines allocation and replenishment lanes based on a one-to-one relationship between DC and channel or store location. When merchandise is not available from a predetermined source, the retail location must either wait for its distribution centre to replenish inventory or have an analyst manually intervene to accelerate the process. This situation often leads to disappointed customers, lost sales, costly transfers and lower margins.

Logility’s Dynamic Multi-Source Allocation and Replenishment algorithm proactively evaluates the entire distribution network to dynamically identify the most cost-effective replenishment location while simultaneously prioritizing channel/store locations based on business rules.

Logility’s Dynamic Allocation and Replenishment algorithmic engine ensures retail goals are met and the channel/location needs are prioritized across the entire network. For example, when shipments to multiple DCs are not in sync this can cause some stores to receive merchandise while other, higher priority locations, may not.

However, Logility’s Dynamic Allocation and Replenishment can automatically rebalance and prioritize distribution to the right channels/stores without the need for manual intervention. This helps reduce backroom space requirements and accelerate inventory to make sure the right products are available for customers at priority locations.

“Today’s demanding consumers expect the merchandise they want to be available when and where they want to purchase,” said Allan Dow, president, Logility.

“With this new algorithm-driven capability, Logility Voyager Retail Optimization helps retailers automatically allocate and replenish merchandise to priority locations; providing each location the maximum amount of time and space to sell merchandise at full price. Retailers are able to minimize costly transfers, decrease markdowns and maximize product profitability while reducing the amount of time each analyst must dedicate to the allocation and replenishment process.”