What are we talking about ?
An automatic replenishment system (ARS) primarily generates replenishment orders. The logic of ARS can be embedded into to organization’s ERP systems.
Retailers (supermarkets) generally operate at very high-frequency planning. They usually receive orders every day.
With some retailers dealing with millions of products it becomes highly expensive to monitor the replenishment process manually or with standard ERP systems.
Automatic replenishment planning mitigates this by generating replenishment orders automatically that requires minimal manual intervention.
Benefits
• Lower administrative costs.
• Higher inventory turnover.
• Accurate and flexible reporting.
• Better cash flow.
• Better customer service level and customer satisfaction.
Who benefits from automatic replenishment?
Retailers with:
• Low product availability,
• Laborious manual replenishment planning,
• Excessive replenishment expenses,
• Higher amount of capital locked up as inventory.