RESULTS | APPAREL
Reducing lost sales with demand-driven store replenishment and allocation
A global apparel manufacturer and retailer with more than 15,000 SKUs was experiencing chronic stockouts in fast sellers, overstocks in slow sellers, and major lost sales at store level. Eighty Four Group Consulting helped redesign replenishment and allocation around real-time demand signals and predictive decision support.
Executive summary
The business had plenty of inventory in the network, but too much of it was in the wrong place, in the wrong size mix, or moving too slowly to support demand. Spreadsheet-driven replenishment could not keep up with store-level shifts in demand, leading to poor in-stock performance and significant lost sales.
A demand-driven replenishment and allocation model was introduced, including real-time visibility, a predictive replenishment algorithm, and replacement of the Excel-based workflow. The result was significant 8-figure annual lost sales reduction, stronger on-shelf availability, and faster decision cycles.
The challenge
Apparel networks are difficult to manage because demand shifts quickly across styles, colors, sizes, and stores. In this case, the business was operating with:
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significant overstocks in slow sellers
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out-of-stocks in fast sellers
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recurring lost sales in stores
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emergency transfers and manual workarounds
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inventory that appeared high overall, but did not translate into availability where demand was strongest
This was hurting revenue, margin, and confidence in allocation decisions. The issue was not effort. It was that the operating model was too slow and too manual.
Where control was breaking down
Replenishment and allocation decisions were largely Excel-based. That approach could not respond fast enough to store-level selling patterns, size-curve differences, or fast-moving demand changes.
The business had inventory in the system, but not enough visibility and decision support to place it in the right stores, in the right quantities, at the right time. In practical terms, inventory existed, but availability did not.
The solution
Eighty Four Group Consulting implemented a more responsive replenishment and allocation model built around three improvements.
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Real-time store replenishment and allocation
A system was developed to translate demand signals into faster replenishment and allocation decisions, with stronger visibility into sales, on-hands, and store-level patterns.
What improved
Business outcomes
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significant 8-figure annual lost sales reduction
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stronger on-shelf availability for fast sellers and key sizes
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better inventory-to-demand alignment at store level
Operating outcomes
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faster replenishment decision cycles
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fewer emergency transfers
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less manual firefighting
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stronger confidence in allocation decisions during seasonal shifts and demand peaks
Why this matters in apparel
In apparel, timing is often the difference between full-price sell-through and markdown. When store-level replenishment is too slow, the business loses revenue on fast movers while still carrying too much inventory elsewhere.
This case shows how better decision support can improve three things at once: revenue, margin, and customer experience. It also highlights a broader point: total inventory is not the same thing as useful availability.
Capabilities demonstrated
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high-SKU inventory discipline
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store replenishment strategy
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allocation design
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predictive replenishment logic
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process digitization from Excel to real-time execution
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lost sales reduction through better availability
Similar decision problems often look like this
If your network has high inventory but still suffers from stockouts, weak in-stock performance, or recurring lost sales, the issue may be decision quality in replenishment and allocation rather than inventory volume alone.
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