Short season and fashion items challenge a retailer to make the right decision quickly and with minimal information. There is, at best, a few weeks to sell what you bought.
Seasonal Allocation provides precise product allocation designed to maximize profitability each week of the season. Case packs that can be profitably allocated today are allocated to the right stores, while those that are more profitably held back in the DC are reserved for allocation in subsequent weeks, when better information is available to allocate them.
“Minimizing inventory cost and lost margin while improving ‘in-stocks’ is the holy grail of replenishment. 4R has begun delivering on all of these drivers.”
—David Pruitt, Chief Executive Officer | Performance Bicycle
When coupled with (Markdown), Seasonal Allocation gives a retailer all the information and tools to meet the speedy requirement of short-season retailing while also delivering maximum profits.
Major retailers understand that pushing product out quickly maximizes sales early, but often causes full margin sales to be lost in stocked out stores while marking down in overstocked stores. Holding it back allows you to direct the inventory to where there is demand, but at the cost of losing precious, high-margin sales early in the season. Seasonal Allocation addresses these complex challenges to maximize profitability.