Allocation & Fulfillment Optimization

Improve Revenue, Margins, Sell Through, and Customer Service Levels

  • Mitigate margin degradation and capacity issues from sharp increases in customer order fulfillment
  • Optimize allocation based on local demand, online demand, store space, presentation, and labor capacity to improve customer service levels, reduce split ships, optimize future order shipping costs, and minimize markdowns
  • Determine the optimal fulfillment location for each customer order while balancing constraints of shipping costs, customer service levels, store capacity and markdown liability
  • Provide a full store presentation with significant less worry about overstocking and deep markdowns
  • No rip-and-replace requirement with API’s to existing Allocation or Order Management Systems


Download Solution Sheet (PDF)

Increased customer sales

by allocating for both local sales and online fulfillment creating 1-3% more revenue

Lowered fulfillment & markdown costs

by considering markdown liabilities in fulfillment decisions resulting in 2-4% margin gains

Increased overall sell-through

by 5-10% via balancing inventory flow against demand, markdowns risks, and customer service levels

Omnichannel Inventory Optimization

“Our online demand is up 300%, but our margin decreased from 36.7% to 26.8% as a result of higher fulfillment costs.”

“Our DC capacity cannot keep up with our expected holiday online demand. We are expecting extreme store-based fulfillment.”

These are real challenges that require interconnected and responsive planning across merchandising, supply chain, and marketing functions to solve.

Watch this introductory video to learn more.

Allocation & Fulfillment in Omnichannel Inventory Optimization

Retailers are facing margin loss from increased online order fulfillment. Others, struggle with capacity issues and demand spikes.

To solve the fulfillment problem, you need to consider both sides of the equation. Allocations must account for both local demand and online fulfillment demand; online customer order fulfillment needs to look at future markdown liabilities along with shipping costs, inventory levels, other operational constraints, as well as customer service levels.

Download Solution Sheet (PDF)