Stock Redistribution
UX Design – UI Design
Analytical system of stock redistribution to find the most profitable transfers store combinations
About the project
Retailers with a large network of stores and a large catalogue of products with some obsolescence constantly need to profitably redistribute excess stocks from stores where sales do not meet expectations to others with greater sales potential.
Out-of-stocks at the central warehouse limit the sales potential, even when there is sufficient stock in other stores, leading to end-of-season promotions that could have been avoided.
The problem
Demand volatility makes forecasting stocks difficult, leading to both shortages and inventory imbalances. This situation limits the sales potential. Moreover, stores with excess stocks will have to make high discounts in the clearance period.
Retailers with a large number of stores and products could profitably redistribute stocks, sending them to stores with greater potential. They could use the store network acting as distribution centers to increase sales through reducing stocks out.
The solution
An analytical system of stock redistribution could find the most profitable transfers between millions of origin-destination store combinations, letting the managers:
- Increase the sale at full price or with lower discount
- Identify and select the most profitable transactions between stores
- Improve the quality of store exposure by recomposing size curves
- Regroup products towards stores with more capacity and potential, freeing up the rest to receive new collections
- Manage closures and openings easily»
The strategy
The strategy had to be flexible as this project was in a hurry. There was no time to do a research study as it should have been. But it was not a problem, since the consulting team was in charge of the conceptualization part of what would be the new platform for the client. They knew exactly what functionalities the new tool had to have. Basically, they were the brain of the concept and we were the executing part that brought it to life.
Ideate / Business aligment
User flow
The platform finds profitable product mismatches across stores, iteratively, at a maximum granularity, considering:
- Likelihood of selling in both origin and destination store
- Expected profit of the product in both origin and destination store
- Transportation and handling costs
Uses demand forecasts generated by the in-season module, based on the expected future sale and not on past
Meets operational restrictions to make it actionable because store personnel need to be focused on customers and sales, not box handling. Among other criteria, the tool minimizes the amount of deliveries sent and received»
This is how it works:
Design / High-Fi prototypes
UI
We developed the screens from the consulting team’s sketches. We work hand in hand to find the best solutions to the challenges of the project.
Design / High-Fi prototypes
Prototype