LEAFIO Inventory Optimization

Multi-echelon replenishment

Multi-echelon replenishment and allocation

LEAFIO inventory optimization takes into account the characteristics of the supply of goods and makes a highly accurate forecast, regarding safety stocks when managing stocks in regional and central warehouses.

LEAFIO multi echelon replenishment: HOW IT WORKS

The Leafio replenishment optimization system was designed to manage inventory at all levels of the supply chain: from a retail store, pharmacy, or supermarket to the chain of regional and central warehouses. Due to the tight connection in the elaborate multi-echelon forecasting algorithm, it is possible to accurately assess the current and future demand for goods on the lead time of an external supplier to the central warehouse, concerning the supply schedule of a product to stores.

  • icon-Ensuring inventory balance icon-hover-Ensuring inventory balance
    Ensuring inventory balance
    Transparent unified inventory management process in the entire retail chain due to the close connection between demand and supply of goods at all levels of the supply chain.
  • icon-Transparent product range rotation process icon-hover-Transparent product range rotation process
    Transparent product range rotation process
    The product range rotation in terms of inventory management becomes automatic and transparent.
  • icon-Your business processes flexible settings icon-hover-Your business processes flexible settings
    Your business processes flexible settings
    There is the possibility of really flexible algorithm settings, regarding all the necessary factors and features of the goods delivery process.

The system takes into account all the business parameters and effective order peculiarities

PARAMETERS FOR THE STORAGE LAYOUT AT THE DC
  • Current demand for the product

    The system evaluates the current demand for goods at each store, which is replenished through the distribution centre.

  • Forecast demand for the product

    Estimation of the forecast demand for goods is made for each store, which is replenished through the DC. The following is taken into account: the number of deliveries of goods by an external supplier to each store based on the DC delivery schedule, seasonality, promotional activities and other factors.

  • The total demand for goods across the retail chain

    The current demand for the product at each level and the forecast demand taking into account seasonality, promotional activities and other factors, results in total demand for the product across the chain.

  • Forecast demand for warehouse needs

    Calculation at the warehouse level occurs whether they are intermediate or wholesaler. In this case, the forecast demand is estimated to meet the needs of the warehouse(s) on the supply leg, taking into account all the necessary factors.

  • The order optimization taking into account the supplier's conditions

    There is a general aggregation, order optimization, if it is necessary based on the supplier's conditions, the order is rounded up to the multiplicity factor.

  • Checking the order correctness

    A final check of the order correctness so as not to miss anything.

  • Auto-sending order to a supplier

    The order is generated and sent to the supplier automatically or accepted by the manager, depending on the settings selected for a particular supplier.

PARAMETERS FOR THE CROSS-DOCKING SCHEME
  • General demand for the product

    The total demand of stores for the product on the delivery lead time is estimated.

  • Order multiplicity factor

    In case of pick by line and pick by zero schemes, when the supplier's packaging can be unpacked at the warehouse and divided into smaller lots based on the lower distribution of goods from the DC to stores, the system can evaluate the order quantity and make a decision on the order based on the needs of stores in units of measurement of the DC multiplicity.

  • The order optimization taking into account the supplier's conditions

    There is a general aggregation, order optimization, if it is necessary based on the supplier's conditions, the order is rounded up to the multiplicity factor.

  • Checking the order correctness

    A final check of the order correctness so as not to miss anything.

  • Auto-sending order to a supplier

    The order is generated and sent to the supplier automatically or accepted by the manager, depending on the settings selected for a particular supplier.

LEAFIO MULTI-ECHELON REPLENISHMENT 
ADVANTAGES

20
%
Potential inventory reduction at DC with increased availability in stores
30
%
Improvement of turnover in the entire chain
30
%
Reducing of excess inventory at DCs
15
%
Decrease in storage expenses due to stock reduction

INVENTORY OPTIMIZATION SOFTWARE TRUSTED BY RETAILERS THE WORLD OVER

Suitable for all retail verticals: supermarkets, pharmacies, DIY, health & beauty, convenience, liquor, toy and pet stores.

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The objectives of the solution implementation project were: increase inventory turnover and improve the SKU service level at our locations. I'm proud to say that all goals have been reached as we have achieved a significant decrease of overstock levels and an increase of product availability on the shelves. The customers can now see the improvements - all products introduced to the stores are available for purchase.
The LEAFIO team has a deep understanding of all inventory management processes, clear methodology, high-quality software, and very respectful consulting and technical support, both during the implementation and during the period after its completion. Don`t be afraid to use LEAFIO. Everything will work out. Please realize that each of your employees will work more efficiently, staying in their comfort zone. They will finally realize that this is an automation of the process and that it will be beneficial not only for them but also for the company as a whole. I would like to encourage future clients to be sure - LEAFIO team`ll help with inventory optimization and process automation. Have faith in yourself, have faith in LEAFIO.
During the year, we opened 23 new stores that were connected to the LEAFIO system. When we switched to centralized ordering, our surplus was decreased. We reduced the amount of time we spent on managing inventory in stores. The program does not work on forecasting but is based on demand. Because of this, we are managing inventory and product availability incredibly well, which is very important to the customer

Check up the LEAFIO Inventory Optimization demo

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LEAFIO AI RETAIL PLATFORM:

  • Automatic Replenishment

    A comprehensive feature that includes automatic calculation of quantity requirements per order, automatic generation of orders, automatic dispatch of orders, automatic editing of submitted orders based on feedback from the supplier, and control of order execution.

  • Fresh Inventory

    The system helps to strike a balance between availability and lack of write-offs. Taking into account high variability, uneven demand within a week, expiration date, supplier delivery slot throughout the day you can make your inventory management and margins of different categories of fresh goods more accurate.

  • Dashboard

    Dashboard was creatively designed for a new level of managers`s engagement to the inventory optimization process. Visual and transparent than ever. You can focus on the essentials, understand the problems without a deep analysis; it tells you where to look to make managerial decisions.

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