Optimizing replenishment decisions is based upon balancing multiple factors. It starts with buying decisions that are based on a sound understanding of:
Your Products’ Economics
Buyers require the ability to dynamically adjust to changes on a daily basis down to the location/ SKU level. This is true whether you are replenishing a distribution center, a retail store, or a hospital pharmacy.
HIMPACT® Optimizes Replenishment For You
HIMPACT’s unique forecast, service, lead-time, and inventory optimization models reliably balance the relationship between inventory and customer service, identifying the right inventory levels to truly deliver your customer service to your targeted levels. The system is capable of:
- Balancing Multiple Factors
- Dynamically Adjusting for Each SKU
HIMPACT’s optimized replenishment solution utilizes the same decision engine for DC and Store replenishment. The additional functionality available for each is a recognition of the many different replenishment models that exist today. HIMPACT® not only analyzes but optimizes these six components daily for each location/SKU:
How Replenishment Works in HIMPACT®
Inventory replenishment is about protecting the customer service objective first. HIMPACT® looks at every item, every night, and determines the projected service attainment. It then predicts when it will need to buy to meet that service goal.
The replenishment engine rolls this up to the next level, depending if it is DC or store replenishment, and gives the same determination of when to buy. HIMPACT® highlights all orders that should be placed today. You can also see any order that it projects will be placed tomorrow, the next day, or in 20 days.
Each order is placed as late as possible (just in time) to protect customer service. The replenishment engine rebalances order quantities so that the next order will be placed as late and as easily as possible while taking Economic Order Quantities into account.
What do we mean by easily? Each HIMPACT® order quantity decision rebalances the product line so that all the items will be reordered at the same time when the next order point is reached. This is done while also respecting your network parameters for service and profit, along with meeting vendor and transportation requirements.
Replenishment Types and Distribution Methods
HIMPACT® supports Store, DC, and Vendor Managed Inventory in one application. The same high level of functionality is provided for all replenishment types. We support multiple distribution methods, including cross-dock, flow-through, DC-to-store, vendor-to-DC, and direct store delivery (vendor-to-store).