Anonymized real-world work Multi-location retail

Multi-location Inventory Transfer Automation

An auto-transfer system that calculates and sends store transfers from a weekly sales-based demand estimate, warehouse availability, defined transfer rules, and product substitution logic.

Situation

A multi-location retailer replenishes its stores from a central warehouse.

Problem

Replenishment and transfers between the central warehouse and the stores required significant manual review of sales and inventory.

What we built

An auto-transfer system that calculates and sends transfers automatically, using:

  • A demand estimate derived from that week's sales
  • Warehouse availability
  • Defined transfer rules, such as minimums and maximums
  • Product substitution logic for when the preferred item isn't available

The system automatically executes transfers based on approved rules and recent sales data. Human control is exercised by defining and changing those rules, not by approving each transfer.

When the business wants to change a constraint, such as a minimum or maximum, it requests the change and the rules are updated.

How the transfer system works Four inputs feed an automated transfer calculation: demand from weekly sales, warehouse stock, the transfer rules, and substitution logic. The calculated transfers are sent to the stores automatically. People control the process by requesting rule changes, which update the transfer rules. They do not approve individual transfers. Rule change requested updates Demand from weekly sales Warehouse stock Transfer rules Substitution logic Calculate transfers Transfers sent to stores
How the transfer system works A rule change request updates the transfer rules. The transfer rules, demand from weekly sales, warehouse stock, and substitution logic feed an automated transfer calculation, and the transfers are sent to the stores automatically. People do not approve individual transfers. Rule change requested updates Transfer rules Demand from weekly sales Warehouse stock Substitution logic Calculate transfers Transfers sent to stores
  • Automated step (blue outline)
  • Handled by a person (solid)
  • Data or system (dark outline)
Transfers are calculated and sent automatically. People control the rules, not individual transfers.

How it works: an illustrative example

Synthetic data for illustration only. These are not client figures.

Store 4 sold 18 units of Product A this week and has 2 on hand. The warehouse has 10 units available. Applying the transfer rules, the system sends all 10.

Product B is out of stock at the warehouse. The substitution logic selects an allowed alternative that is in stock and sends that instead.

Security considerations

  • Transfer logic was tested against operational edge cases such as insufficient warehouse stock, negative inventory, missing sales history, and unavailable substitutes.
  • Automation operates using defined business rules rather than ad-hoc manual decisions.
  • Business rules such as minimums and maximums can be changed when operational requirements change.

Outcome

  • Less manual decision-making in replenishment.
  • A more consistent transfer workflow, with the same rules applied to every store.
  • Transfer decisions follow defined business rules instead of ad-hoc judgment.

Possible next steps

  • Adjust the demand estimate for seasonal or promotional periods.

Services: Operations Automation Data & Reporting Automation

Have a similar replenishment or transfer process?

Request a consultation