Replenishment Optimization

Retail Replenishment Optimization

For retailers, it is critical to find the optimal replenishment strategy for each shop. To minimize overall supply chain costs, and maximize product availability and customer satisfaction.

But replenishment is complex, involving everyone in the chain — suppliers, DCs, transport and stores — and taking into account such aspects as:
  • Capacity at DCs (picking, loading, unloading, docks) 
  • Capacity at stores (loading, shelving, storage) 
  • Forecasting of expected sales and volumes (e.g. due to weather); discounts; actions. 
  • Volume volatility; trade-off between high slack (to cover volatility) and less slack (to increase efficiency) 
  • Store opening time windows and availability of personnel 
  • Shops’ geographical locations 

How ORTEC adds value
ORTEC retail solutions and optimization models help you define and implement the best overall replenishment strategy for your business, resulting in:
  • Improved process alignment (picking in DC, transport, shelving in shops) 
  • Improved workload balance throughout the supply chain (DCs, transport, shops) 
  • Higher availability in shops (full shelves) Reduced supply chain costs 
  • Higher truck utilization.

Learn more about the ORTEC approach

Contact us to learn more about our unique, quantitative approach. We'd be delighted to answer any questions you have and to discuss your particular business challenges.