Overview of replenishment planning

In a business, it is important to know the balance between inventory and customer service level. You need a replenishment planning solution to help you with this. It responds immediately to the demands of customers.

It also handles needs of customers with purchasing, distributing and manufacturing capabilities in an organization.

Features of replenishment planning solution

The key things to look out for in a replenishment planning solution include;

  1. Performance at retail stores

This solution is able to plan at the door level or retail shop. It also handles cross docking at the retail distribution shops.

  1. Supports bill of materials

It supports the goal of a well-balanced inventory. This is done by planning production component or, supplying kits to retail stores.

  1. Supports time phased planning

This supports the planning process for the coming years. It allows vendors to communicate effectively to reduce expediting orders.  This solution can re-plan more than once in a single day.

  1. Safety time

It provides a buffer for the demands that outdo the supply. It increases the safety levels during high peak seasons while reducing levels when the season ends.

Replenishment planning process

It is a process that happens regularly. If vendors supply limited number of shipment in the fashion industry, allocation and planning should support these orders.

In some instances, the time needed to setup and forecast items outdoes the savings from the automation of ordering and forecasting. The replenishment model also benefits the availability of on-going merchandise.

It can be subdivided into base components that are used for describing best practices and easier definition.

Demand forecasting

It is the most difficult and influential thing to master of all the replenishment components. Demand forecasting is the bedrock of replenishment buying. It is the key to understanding future needs while replenishment focuses on purchasing a product that supports the anticipated needs.

Replenishment buyers are responsible for the many location of products. They do not possess the analytical background or time to make these crucial decisions.

Lead time forecasting

It has a strong impact on the process of replenishment. Lead time is the number of days taken between placing an order and receiving it. This includes the time taken to input a receipt in to a system.

The amount of deviation with order delivery is indicated by the lead time variance.

Special orders

They are an addition to basic replenishment. Some of the types of special orders needed include opening new stores, compensating promotional activities, and handling buying opportunities.

You can also add products that ought to fill up new shelves as part of the special order. This happens prior to actual sales history. This increases integrated business planning and demand forecast.

The replenishment solution also collects pricing information and product availability from consumers. This is done from different sources for an item. It is commonly used in the health and beauty industry.


It is important for a business to address the needs of its customers. These needs may be current or future related. This is why a replenishment planning solution is vital in any business.

Comments are closed.