Introduction:
Improper inventory planning is a major challenge in many industries, resulting in significant inefficiencies and losses. According to a study conducted by the Institute of Business Forecasting and Planning (IBF), poor inventory management practices cost businesses an estimated $1.1 trillion each year. This figure includes a variety of inefficiencies, such as stockouts, overstocking, and the financial losses resulting from markdowns and obsolescence. Specifically, a 15% loss in topline revenue can occur from non-availability of best-selling SKUs. The current reliance on manual, error-prone spreadsheet methods for inventory planning amplifies the risk of costly supply chain mistakes.
E-commerce fashion brands are especially vulnerable to the effects of poor inventory planning. According to a survey conducted by the National Retail Federation (NRF) and Forrester, 74% of e-commerce retailers in the fashion industry cited inventory mismanagement as a critical issue affecting profitability. Overstocking causes markdowns, which can account for up to 30% of a retailer's total sales and significantly reduced profit margins.
EasyReplenishhelps in the predictive inventory planning space for apparel and fashion accessory e-commerce businesses. EasyReplenish enhances inventory control, vendor management, and safety stock rules for improved capital efficiency and revenue.
EasyReplenish provides a sophisticated solution to these issues through automated inventory planning and predictive analytics capabilities. It employs over 20 data points to determine what to stock, when to stock, and how much to stock via timely auto-generated Purchase Orders optimised for manufacturing with vendors. Their solution proactively adjusts stock inventory recommendations based on signals specific to e-commerce fashion brands, such as Facebook ads during new launches, Marketplace demand, and seasonal sales. EasyReplenish combines seamless vendor management and automated purchase order systems to significantly streamline operations.
Dhruv Srivastava, an IIT Dhanbad alumnus and a 2X SAAS
founderwith extensive sales and marketing experience, currently leads the company. He was also a former Entrepreneur in Residence at FableStreet. He is joined by CPO Varun Ravula, who’s also an IIT Dhanbad alumnus with over 4 years of inventory Planning expertise and previous experience at Udaan. Their thorough understanding of market nuances, combined with their strong technological expertise, positions them well to lead EasyReplenish to significant growth.
Market Opportunity:
Fashion trends change quickly, and seasonal demand necessitates precise inventory management. The global fashion e-commerce market was valued at approximately $752 billion in 2020 and is projected to reach $1 trillion by 2025. However, this expansion has brought with it significant inventory management challenges. According to Retail Dive, 80% of fashion e-commerce brands experience stockouts during peak shopping seasons, resulting in lost sales and lower customer satisfaction.
EasyReplenish’s immediate target market comprises of India and US based e-commerce brands with an annual revenue ranging from USD 1million to USD 50 million and 500+ SKUs. This presents a USD 5 billion market opportunity for the company. EasyReplenish's distinct value proposition stems from its focus on mid-market apparel and accessories e-commerce businesses and superior demand forecasting capabilities.
100X Thesis:
The company's innovative inventory optimization strategy, which combines cutting-edge machine learning algorithms with deep market insights, will establish new industry benchmarks. As capital becomes more expensive, the importance of efficient working capital cycles grows, and EasyReplenish addresses this effectively. The founding team's dedication and strategic vision contribute to the company's chances of success and industry leadership.
EasyReplenish is uniquely positioned to address common inventory and capital inefficiencies in the e-commerce fashion sector. By optimising inventory management, EasyReplenish not only promises to reduce capital blockage and prevent revenue loss but also aims to revolutionise the industry by enabling more resilient supply chains.
Conclusion:
EasyReplenish is expected to help e-commerce first brands to become more profitable through improved forecasting, capital efficiency and controlling supply chain processes. Their technology could become a cornerstone in predictive analytics for inventory management, potentially setting a benchmark for the sector and promoting widespread adoption of smarter, data-driven business practices.
