The process of determining how to successfully replenish inventory throughout the season, in what amounts, through which vendors/shippers, and how frequently — to minimise out-of-stocks, unneeded markdowns, and overall expenses — is known as replenishment planning. In reality, replenishment planning is a complex process that takes into account a variety of factors such as logistics routes, timeliness, availability, and cost. After all, what makes sense is restoring inventory if it arrives late, is the wrong quantity, or is too costly.

1. Steps to building a Successful
Replenishment Planning that drives
profit
The process of determining how to successfully replenish inventory throughout the season,
in what amounts, through which vendors/shippers, and how frequently — to minimise
out-of-stocks, unneeded markdowns, and overall expenses — is known as replenishment
planning.
In reality, replenishment planning is a complex process that takes into account a variety of
factors such as logistics routes, timeliness, availability, and cost. After all, what makes sense
is restoring inventory if it arrives late, is the wrong quantity, or is too costly.

2. A Good Replenishment planning tool should have:-
1. Reduce out-of-stocks by bringing goods in just when it is required.
2. Only restock with the product that is likely to sell to avoid excessive markdowns.
3. Decrease shipping costs by combining orders and cutting logistics routes whenever
possible.
4. Reduce the expense of store transfers by ensuring that each location has its
successful restocking strategy.
Steps for Good Replenishment Planning that
drives profit
1. Have a clear view of the entire business. Retail businesses are frequently divided
into various operational areas, with senior executives responsible only for their own.
2. Make a list of distribution factors for each product. When planning your
replenishment stock, it's critical to consider demand. However, as previously said,
demand is simply one of several factors that must be considered. You must also have
a thorough awareness of your product's distribution path.
3. Identify the distribution process for a certain product.
4. When feasible, use artificial intelligence and advanced analytics software like "Crest"
which is an AI-based Replenishment planning software that provides almost 85 % of
accuracy in planning the inventory.