Inventory Planning Mistake #1 - Incorrect DRR (Sales velocity)

Daily Run Rate (DRR) or Sales velocity

Is the prime factor in accurate inventory forecasting, but a common pitfall lies in overlooking the impact of out-of-stock days. Bestsellers can untimely stock-out  due to under ordering caused by incorrect DRR (Daily run rate) which is higher than considered.

‍Mistake

‍Not considering SKU out-of-stock days from DRR (Daily run rate).

Explained below with an example.

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The DRR Challenge: Tackling Under-stocking

DRR, the heartbeat of inventory forecasting, determines the average daily product sales. However, omitting out-of-stock days from the equation can lead to underestimating demand, causing chronic understocking. This results in missed sales opportunities and customer dissatisfaction.

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The Power of Automation and Adaptation‍

EasyReplenish is designed with intelligence and adaptability at its core:

• Automated Forecasting: This tool automates DRR calculations, saving time and reducing the risk of human error.
•  Continuous Monitoring: EasyReplenish monitors changing market dynamics and adjusts forecasts accordingly, ensuring ongoing accuracy. EasyReplenish Unveiled: The Smart Solution
  

Introducing EasyReplenish

Your secret weapon for precise demand and purchase planning. Here's how it works:

• Holistic Data Integration: EasyReplenish seamlessly integrates historical sales data with out-of-stock records, crafting a comprehensive view of product movement.
• Accurate DRR Calculation: By factoring in out-of-stock days, EasyReplenish calculates the true DRR, aligning inventory levels with actual demand.
• Real-Time Insights: This tool offers real-time insights into stock turnover rates, identifying patterns, and enabling data-driven decisions.