Dynamic Replenishment

What is Dynamic Replenishment?

In dynamic replenishment, supply is based on the customer demand at that time, instead of on pre-fixed routes or historic forecasts.

Why optimize Dynamic Replenishment?

Organizations in retail often work with a fixed and predefined delivery schedule for a certain period, regardless of the actual situation such as marketing activities, seasonability, weather patterns, and other dynamic aspects which influence demand. Inevitably, this leads to unwanted spikes in logistics.

How to optimize Dynamic Replenishment?

By creating insight for both the supplier and customer on a mid-term to long-term, transportation schedules can be adapted to operational needs and dynamism is added to the process by forecasting demand. Various retailers such as Albert Heijn, Walmart, Tesco and Carrefour have been pioneering in this field, by regularly adapting their replenishment and delivery schedules and avoiding a fixed composition for daily transport journeys.

What are the results of optimizing Dynamic Replenishment?

Optimizing dynamic replenishment improves the loading and logistics efficiency, while still respecting all service level and quality criteria. By matching utilization and delivery with demand forecasting based on point-of-sale data, retailers can keep their stocks replenished, as well as mobilize the right number of employees to deliver any given service.

Why contact ORTEC to optimize Dynamic Replenishment?

ORTEC's solutions integrate demand forecasting, inventory optimization and transportation decision making into one co-hesive process. ORTEC has extensive international experience in introducing and optimizing dynamic replenishment in retail (Albert Heijn, Walmart, Tesco, Carrefour).