OPT Shipping

Keywords: Store replenishment – Adaptive Replenishment - Inventory Optimization – Supply Chain – Fashion – Fast Fashion – Demand Management – Retail – Omni-Channel – Prescriptive Analytics 

Short Intro

OPT Shipping is a powerful solution to optimize the distribution of products to a network of fashion or retail Omni-Channel type stores.

OPT Shippingsupports what we call “adaptive replenishment” at store level by applying advanced prescriptive analytics.

OPT Shipping works at the distribution center level. Knowing the expected demand of the stores it suggests which products and the quantity to be shipped to a certain store, in a certain time window.

The goal is to fill the best demand, respecting all the other several user business constraints and considering the availability of goods at the distribution level as well the stock at the store level.

Naturally OPT Shipping permits users to respect mandatory constraints, like to require for example, a minimum quantity based on the format of the store, but it is also able to dynamically modulate the assortments in order to reach an overall optimization and match the availability of goods at the distribution center. 

OPT Shipping, by sophisticated algorithm models, keeps control of the quality of the assortments at the store level.

OPT Shipping fits need of high-fashion and mass market thanks to its  high level of configurability and feasibility.

Its been designed to for decision support of by  organizations, having hundreds or even thousands of stores but can also be scaled and adopted by smaller retailers.

Typical Customers and Users

Fashion Retail

Benefits:

Improvement of the sell-through

Improved profitability

Improved Customer experience

The merchandisers can quickly evaluate alternative strategies, pursing different objectives or releasing certain business constraints

The intensive manual activity related to the management of the inventory distribution is dramatically reduced, permitting the user to dedicate more time to the quality and the added-value activities;

Main Features

  • The objective of the optimization can be chosen by the merchandize selection among many options. The most important modalities (objective functions) are those called “to target” and “to progress Multi-Objective functions permits users to apply different distribution approaches in different time of for different type of products.
    For example choosing the best distribution model to manage the needs of start-up and a different one for pre-sales period.
  • Best fitting with the sizes curves
  • Product kits management: permitting clients to manage the combination of products
  • Management of several operational constraints that typically merchandizers, product manager and logistics must respect. All the constraints can be differentiated for each stores and for each product/category;
  • “What-if” functionality and scenario comparison
  • Sophisticated set of KPIs and smart alerts to quickly evaluate the distributions plans
  • Fast computation of scenarios
  • Easy integration with existing IT systems (ERP, etc.)

Connection with others ACT OR products

OPT Shipping can be combined with:

  1. Before!Predictive Analytics to predict the demand (also at store level and considering an omni-channel distribution system);
  2. OPT Buying that, based on the forecast determinates the optimal quantity to produce in order to obtain a pre-defined sell-through;
  3. DPO (Dynamic Price Optimization) permitting users to optimize the price in order to reach a defined sales target. It also has functionality of Mark-Down Optimization (MDO)
  4. Production Planning and Simulation (PPS). Modeling of actual factory processes for cost cutting purposes.

Technology remarks

The product has been designed to maximize the computational performances reducing hardware costs when the complexity and large quantities of data exist.

Partnerships

With partners in Europe, USA ACTOR offers a dedicated service at the worldwide level.

If you are a Consultant firm or a software integrator, you can apply for becoming a qualifiedACTOR distributor.

Partnership styles, includes the possibility to resell ACTOR products or embed the DPO in your solutions.