Difficulties in managing a large share of promotions with a variety of promotional mechanics
Health and Beauty/Drogerie stores have a highly competitive environment, and the share of goods in promotions can be as high as 80%. In addition to discounts, the 1+1 and 1+2 mechanics are widely used here, which requires a special inventory management approach. It is a tricky task for a retailer to calculate demand and orders so as not to generate overstock and ensure availability.
How it is solved with LEAFIO:
Using AI algorithms, the system builds the most accurate demand forecasts for the upcoming campaign;
Automatic order generation and dispatch allows you to ensure the availability of goods in each store and at the DC exactly in amount and time for the start of the campaign;
By adapting the inventory level to the current demand and sales rates, the system allows to easily manage any mechanics (including 1+1, 2+1);
Not to form overstocks at the end of the promotion, the program gradually reduces the stock of promotional goods by regulating the deliveries quantity and timing;
The promotional calendar provides visibility of all past, current, and future promotions across the chain, categories, stores, and suppliers;
The analytical block allows not only to monitor the running of the campaign but to analyze its results for future adjustments.