How do you prevent cannibalization of store stock?

When local stores are picking and distributing orders, cannibalization of store stock can occur. This means that store stock get’s consumed by online orders, causing problems for consumers that buy in store. These problems can be easily prevented. 

OIL has insights in the store stock. Store stock can be consumed in the order dispatch process determined by the OIL dispatch algorithms and rules. This can be because the customer prefers a Click & Collect order, or as a result of the dispatch rules.

Business rules to prevent cannibalization of store stock

OIL supports different business rules to optimize consuming store stock; for example, to allow this in case of a Click & Collect order but limit this in other cases.

How the engine acts, is based upon rules and configurations. Besides this it is also supported by applying stock margins. This prevents cannibalization of store stock – and supports the retailer to offer items to its own (local) clientele.

This subject is often a topic at franchise organizations. From an organizational point of view this can be supported as well by applying margins or contributions; the retailer is compensated.