Have you ever tried to make an online purchase, only to realize that your desired item was out of stock? At the same time, it is very well possible that the item was available in one of the retailer’s traditional brick-and-mortar stores close to your home. Or, did you ever need to have a product right away, but the webshop only offered next day delivery? Probably you switched to another website to buy the same or a similar product. And if you are the retailer in this situation, you may not have just lost the sale, but the customer all together.
Districon is convinced that using your complete network inventory (including your stores) enables you to optimize the decision from what location you are going to deliver to your customer. Where do you have overstock, how fast do you need to deliver, where do you want to stimulate stock rotation, etc. As we continuously explore opportunities to improve your retail supply chain, we challenged our intern Florine van Meer to develop an algorithm that optimizes the allocation of an online order to a potential fulfilment hub.