Retail brands sell products across various channels, such as offline stores, marketplaces, social media, and their own website. However, challenges arise when dealing with diverse platforms, each with its own set of rules and penalties. For instance, marketplaces like Amazon impose charges for delayed fulfillment or rejected orders.
To mitigate risks and ensure efficient inventory management, retail brands often choose to allocate separate Available-to-Promise (ATP) inventories for each sales channel. This approach minimizes the likelihood of overselling on different channels.
In particular, committing the entire ATP to a single channel, such as a brand's website, could pose a significant risk. If the entire available inventory is sold on the brand's website and additional sales occur on platforms like Amazon, the brand may incur penalties for failing to fulfill orders promptly on Amazon.
With this update, HotWax Commerce streamlined this process by ability to manage multiple ATP inventories for each channel.
Facility Management App in HotWax Commerce, allows retail brands to create distinct Sales Channel Groups for each sales channel. Facilities, such as warehouses and retail stores, can be added to specific groups. This way retail brands can choose inventory of which storage location should be available for selling to which sales channel. Benefits of Multi-channel ATP inventory:
Selective Inventory Commitment:
- Retailers gain the power to commit inventory selectively, ensuring that only selectable facilities participate in fulfilling orders for specific channels.
- For instance, a retail brand has stores in Times Square, Brooklyn, Broadway, and a central warehouse. However, they only want to commit inventory from the central warehouse and store at Times Square for Amazon, while still selling inventory of all four facilities on its brand website, they can easily do that.
- Retail brands can now view Available-to-Promise (ATP) inventory for different channels directly from the Product Inventory View page, providing real-time insights into inventory availability.
- Retail brands can set inventory thresholds for different channels, preventing overselling and ensuring compliance with each channel's rules.
This update empowers retailers to make informed decisions, minimize the risk of overselling, and comply with channel-specific rules, ultimately enhancing their operational efficiency and customer satisfaction.