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Allocation
Allocation Module Overview
Allocation Module Overview
Please see below an overview for the allocation module
Eytan Daniyalzade avatar
Written by Eytan Daniyalzade
Updated over a week ago

Overview

Allocation module ensures that you have the right amount of inventory in each of your locations (i.e. points of sale) to cover the forecasted demand on each location.

The output of allocation are transfer orders from warehouses (sources) to sales locations (destinations). The allocation workflow uses inventory on hand by location, inventory at the warehouse and sales forecasts by location to determine how much inventory should be transferred from source locations to destinations.

Note: Please note that Allocation is a separate module on Toolio. So, make sure that Allocation is enabled on your Toolio account, and let your customer success manager know if you would like this module to be turned on.

Workflow

Toolio tracks your sales and inventory position by location (including stores and warehouse). So, to be able to generate transfer orders, you will need to:

  • Set up your locations and transit times (Set your sources and destinations)

    • This will be a data file that you import into Toolio.

  • Set up Allocation Strategies by Choice (Style Color)

    • Location Lists (clusters)

    • WOS

    • Size Curves

    • Start and End dates for your assortments by door.

  • Set up MDQ - for any minimum and maximum display quantities (maximum coming soon) at the store level (Will be integrated into Allocation Strategies in a more succinct workflow).

Build your Allocation Strategies:

  • Go to your Allocation Plan module and select Allocation Strategies.

  • Once you are in this section you will be able to set up the Allocation Strategies by Choice

  • In order for these strategies to work you will need to fill in:

    • Location List - set this up in the settings section of your account

    • Size Curves - set this up in the settings section of your account

    • Target WOS - Enter in your overall WOS target for the choice (you can edit by store)

    • Start Date and End Date will be the dates you expect to have your choices eligible to be allocated.

  • You can edit at the location level by right clicking on a row (context menu) and selecting Edit Location Matrix.

    • Here you customize all parameters by location and even customize the location eligibility for have a choice as part of the allocation strategy.

    • Save your changes as you go.

Running your Allocation Strategies

To generate an allocation you will need to first ensure you have an Item Plan forecast set up for the skus you want to allocate. The Allocation Module pulls in your item plan forecast and runs its algorithm in conjunction with your current inventory and any in-transit that is already on its way. It will output based on all the info you entered in the Allocation Strategies section for each choice.

Steps to Run:

  1. Select the choices you want to run an allocation strategy for. You can filter this list by any of your product/variant table attributes. You can also filter using the fields in Allocation Strategy to easily find items by Start Date, Target WOS, End Date...etc.

  2. Now right click to get the context menu.

  3. Click on Run Allocation Strategy.

  4. The strategies will run in the background and you can see the progress in the side menu.

Here are the order of operations:

  1. Review forecast

  2. Review MDQ profiles

  3. Review all eligibility flags

  4. Review the start and end dates

Allocation will only generate if a Choice is eligible for a specific location, specific size curve and is within the Start Date and End Date selected in the allocation strategy.

Reviewing the Output:

After your strategies are complete, you can go to the context meu (right-click) and navigate to your Allocation Plan default view or your Recommended Transfer Orders pages that will be filtered to the items you have selected in the Allocation Strategy page.

This will create Transfer Receipts from your inventory sources (i.e. warehouses) to destinations (i.e. points of sale) based on all the Allocation Strategies you set up. You will be able to review:

  • Current In Transit Units - Units shipped from your DC that have not been received.

  • Transfer Receipts Units - received vs the total need.

  • In Transit to Place Units - The unit need to be sent. This will be used to create your allocations either via exporting to CSV or via an ERP integration.

Key Views:

Allocation Plan

Toolio - Allocation section

  • Toolio - Allocation Topline will show you by store what your allocations will look like with a drilldown into your categories.

  • Toolio - Allocation Week lets you review your Items with the ability to zoom to door level.

  • Toolio - Allocation Review a view that will help you in any data auditing.

Toolio - Overview section

  • Toolio - Assortment Grid will help you get a visual to your assortments by store and their turn.

  • Toolio - Store Forecast review how your item plan forecasts are broken out by store.

  • Toolio - Current Product Performance review historic product performance by location.

Recommended Transfer Orders

  • In this page you can create views to download and use as CSV files for your ERP system OR a direct link to your ERP system (Netsuite).

Video

Please see how Allocation works in action below

Related Articles:

MDQ - Minimum Display Quantity

Related Articles
Minimum Display Quantity
Allocation - Data Needs and Setup
Merchandise Plan 101
Item Plan Module - Reports
Applying MDQ Constraints in AP
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