Seasonality

Almost every retail category is subject to seasonality, meaning you have to accept that there are goods that do not sell for the same price throughout the year, and experience demand fluctuations. And some retail businesses have to struggle with demand peaks and troughs for all their product assortment.

ABM Inventory has an integrated Seasonality tool, which can help you to better manage seasonal demand fluctuations.

Seasonality profiles directory

Seasonality profiles directory

Seasonality option is compatible with DFO-managed goods (for central warehouse only) and at the same for DFO-, and DBM-inventory. This option helps to create and control the so-called seasonality profile, which contains data on seasonality coefficient, goods and periods (months and days).

 

Seasonality coefficient

Pre-set coefficient is being applied to the needed inventory buffer on the needed date, and at the same time the system considers the previously-used seasonality coefficient (if available). The system logs in the change and marks it with the reason “Safety buffer was modified due to seasonality”. The coefficient be both multiplying or decreasing. The system can keep data on numerous profiles and each profile may contain multiple goods, but there is a rule: one product may have only one profile.

Seasonality profile products

Seasonality profile products

It’s worth pointing out that ABM Inventory can keep data on abnormal demand days, for example, Black Friday, Labour Day or Christmas season. Demand peaks and abnormal demand days may mostly depend on calendar dates, and can be forecasted in advance. When the ADU (average daily usage) indicator is being formed, abnormal demand days are not counted, which makes this indicator even more accurate and precise.

Abnormal demand days calendar

Abnormal demand days calendar

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