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Case study: Stock management in retail

In the fashion industry, it is of vital importance to stock and replenish stores optimally and in accordance with market demand. COSMO CONSULT offers a dynamic and flexible solution tailored precisely for this challenge. It provides yield-optimized proposals for reordered or redistributed quantities, without having to maintain costly target stock level

Key facts

  • Stock management that responds to market demand
  • Yield-based stock optimization that takes delivery times and delivery conditions into account
  • Increasing margins and reducing residual stocks

Initial situation

In the fashion industry, replenishment and redistribution are often carried out on the basis of manually defined target stock quantities. Delivery times and conditions –  such as minimum order quantities - or short-term changes in demand are usually ignored. COSMO CONSULT has thus developed a dynamic and flexible solution for such automated redistributi

Approach

A time series analysis method was used to define effects such as season, cycles, and special offers on the merchandise category level. The current stock situation is then analyzed per article, store and store size. The measured effects can then be used to forecast demand over the rest of the season. The forecasts are included in the optimization model along with parameters such as delivery times and delivery conditions, which provide yield-maximizing replenishment and redistribution quantities based on this information and additional rules, such as minimum stock quantiti

Additional benefit

Our solution provides yield-optimized suggestions on reordered or redistributed quantities. Depositing and maintaining target stocks per SKU (Stock Keeping Unit) is thus not necessary any more, and the associated time expenditure is eliminated. Nevertheless, the parameters are only taken into account by the optimization model if they are specified. In addition, seasonal effects and actions can be explicitly considered. The algorithm thus reacts in a proactive manner. Delivery times and complex delivery restrictions such as minimum order quantities can also be incorporated into the model. This results in a yield-optimized solution that takes into account all relevant underlying conditions.

Ask our experts

COSMO CONSULT has many years of experience in providing digital solutions in the field of data science. Our services are based on a clear approach, detailed knowledge of business processes, and excellent product expertise. Our experts will be happy to advise you on the unique possibilities available to you when you use modern software technologies. Please give us a call! We look forward to talking with you on how your business can enter the digital age.

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COSMO CONSULT International

COSMO CONSULT SI GmbH
Lothringerstraße 14
1030 Wien
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COSMO CONSULT
201 rue Carnot
94120 Fontenay-sous-Bois
+33 1 83010360
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COSMO CONSULT
Schoenebergerstr. 15
10963 Berlin
+49 30 343815-0
+49 30 343815-111
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COSMO CONSULT S.L.
Vallespir, 19 4ª Módulo 2
08173 Sant Cugat del Vallès, Barcelona
+34 902820242
+34 943313002
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COSMO CONSULT AB
Ralambsvaegen 17
11259 Stockholm
+46 8 7998660
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COSMO CONSULT
Ruetistrasse 13
8952 Schlieren
+41 44 8306465
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COSMO CONSULT Business S.L.
Presidente Riesco 5711, Oficina 802b
Las Condes, Santiago de Chile
+569 73769126
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COSMO CONSULT Business S.L.
Avenida Cra. 45 # 114-78, Piso 6
Bogotá - Colombia
+57 320 7935148
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COSMO CONSULT Business S.L
Checoslovaquia E10-105 y Eloy Alfaro
Quito, Ecuador
‪+593 99 608 4180
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COSMO CONSULT Business S.L.
Rodolfo Gaona 81 Piso 7
Colonia Lomas de Sotelo
México, D.F. 11200
+52 55 2452-9200
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Edificio Magel, Segundo Piso
Ave Samuel Lewis, Urb. Obarrio,
Ciudad de Panamá, República de Panamá
+507 62800343
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