PacSun Improves Profitability With Intelligent Allocation and Replenishment

Retailers have seen their online sales accelerate since the start of the pandemic, leading them to devise new ways to meet customer expectations. Because of this growth, costs increased, so specialty retailer PacSun added intelligence to its allocation and fulfillment processes to optimize its inventory efficiency.

"PacSun wanted to be ready for the holiday season by proactively managing our costs created by the increase in online sales,” said Mike Relich, Co-CEO of PacSun. “By adding more intelligence to our allocation processes with antuit.ai, we allocated inventory for the omnichannel demand and minimized split shipments."

Working with Antuit.ai, now part of Zebra Technologies, PacSun was able to tap Antuit.ai’s omnichannel-aware allocation technology, resulting in the reduction of shipping distance traveled for the orders, doubling the number of ship completes. This resulted in more accurate forecasting for PacSun store and online demand, and a balanced inventory between stores and its web-depot location for online sales.

In September, antuit.ai launched its Forecasting, Allocation and Replenishment solution suite to the retail market. This omnichannel-aware suite employs AI and machine learning to anticipate consumer demand at the most granular levels across all fulfillment channels by leveraging internal and external data to evaluate all demand drivers.

"To be customer-centric and profitable in today’s omnichannel-world, retailers must optimize inventory by placing it in the right places in their network, at the right time,” Yogesh Kulkarni, Co-CEO of antuit.ai. “To do so requires leveraging granular forecasting for online fulfillment and store sales demand, while taking returns into account."

PacSun and Antuit.ai will co-present on this topic as part of a pre-recorded NRF Exhibitor Big Ideas session that will be made available on-demand from antuit.ai on Tuesday, Jan. 18, 2022 and following the show from NRF. The co-presentation by Relich and Kulkarni is titled, “Omnichannel-aware allocation: How PacSun improved profitability with intelligent allocation and replenishment produced by antuit.” Michael Relich and Yogesh Kulkarni will be available for queries.