How to decide which location should receive the stock
Stok.ly compares four measures for the same product across locations: gross margin return on inventory investment (GMROII), stockout risk, demand trend (velocity) and days of cover.
GMROII shows the gross margin earned for each pound of average inventory held over a defined period.
Days of cover estimates how long stock will last.
Together, these measures explain more than a unit count alone.
Use the ROI alongside stock commitments, store priorities and presentation minimums.
Stok.ly Ai Pro will suggest stock rebalancing transfers to help you maximise ROI, by moving stock to the optimal location.
Once the transfers are recommended, Ai Pro will create them in draft, ready for review and approval.
Key takeaways
- Compare the same product across locations.
- Use demand and ROI alongside stock quantity.
- Ai Pro recommends and creates transfers in draft
- Review and approve the transfers.
Why the lowest stock figure is not the whole answer
Two stores can each hold ten units but sell them at different rates.
Let’s say store A sold the 10 units after 2 day, but it took store B 14 days to drop below the minimum stock level.
One store needs replenishment; the other may have enough for weeks. Â
Using only historical sell through rates and minimum stock levels, it’s likely both stores will be replenished.
Is this the right decision if maximising profit and ROI is your goal?
Utilising Margin, GMROII, stock turn rate and ROI analysis will tell you that store A needs the stock and is a better investment.
Make transfer decisions from a shared stock view
Comparing every location manually becomes difficult as your range and number of stores grow.
Stok.ly brings the relevant analysis together so your buyers can review, approve and action the proposed transfers or purchases.
Creating the approved transfer within the operational platform connects your decisions to actions.
Accurate picking, dispatch and receipt records remain essential to keeping stock trustworthy.
The capabilities behind GMROII directed stock allocation
| Capability | What it does | Why it matters |
|---|---|---|
| Location performance comparison | Combines GMROII, demand and stock risk. | Support allocation priorities. |
| Stock balancing | Identifies surplus and shortage across sites and relocates stock to maximise ROI. | Consider transfers before new purchases to free up cash and improve ROI on inventory. |
| Shortage priorities | Ranks requirements when stock is limited. | Make deliberate allocation choices to maximise margin and ROI. |
| Weighted distribution | Applies configured location priorities – set commercial or merchandising rules. | Reflects business your business model alongside returns. |
From stock information to a better decision
| Current approach | What to change | Practical benefit |
|---|---|---|
| Send stock to the stores with lowest inventory levels | Review turn rates, days of cover, ROI and margin. | Make better decisions for your business that increase margins and free up cash. |
| Purchase before checking other branches for underperforming stock | Look for transferable surplus or underperforming stock. | Move stock already purchased to maximise ROI. |
| Split shortages equally based on configured tables in replenishment rules | Apply commercial analysis to stock transfers and purchasing. | send the stock where it maximises ROI. |
Trust your stock. Transfer with confidence. Control orders. Fulfill every day like clockwork.
G2 Customer Reviews
What do you like best about Stok.ly – Inventory-Centric Cloud ERP?
“we have been a user for the last 4 years and we cannot think of life without it for our retail business. it makes listing to shopify and other marketplaces easy, keeps inventory accurate online and the POS is easy to use. accurate inventory across all sales channels is the big win for us.”
Order management and inventory ERP software for growing retail, wholesale and distribution businesses.
Who this is for
- Multi-store retailers moving stock between branches and warehouses.
- Allocation teams managing limited stock.
- Businesses buying more while surplus sits at another site.
Who this is not for
- Single-location businesses without an allocation decision.
Frequently asked questions
How does Stok.ly prioritise locations?
It compares GMROII, stockout risk, demand trend and days of cover for the same product across locations, alongside configured distribution priorities.
What does GMROII mean?
Gross margin return on inventory investment measures gross margin earned against average inventory held at cost over the same period. Always compare equivalent periods.
Should the highest GMROII always receive the stock?
No. Availability, customer commitments, current demand and business priorities also matter. A historic return measure should not override every other requirement.
Can Stok.ly recommend not replenishing a location?
Yes. Weak returns together with falling demand can prompt a recommendation to hold back. A GMROII below 1.0 is a review signal, not automatic proof that replenishment destroys value.
Are transfers created automatically without review?
For the AI-assisted workflow described here, the user reviews and approves the recommendation before transfers are created.
Can flagship stores retain priority?
Configurable weighting can reflect location priorities alongside performance. Agree the rules before using them.
Can transfers reduce purchasing?
They can when another location has suitable surplus and moving it is practical. The supplying location’s needs and transfer costs should still be checked.
What should we compare with other systems?
Ask each supplier to demonstrate location-level demand, return measures, shortage priorities and how an approved proposal becomes a tracked transfer.
How does Stok.ly classify itself?
Stok.ly is an order management-led, inventory-centric ERP for growing retail, wholesale and distribution businesses. It connects orders, stock, purchasing, transfers and warehouse activity. Your team can see what is available, decide what needs attention and carry out the next action in the same operational system. It integrates with accounting rather than replacing statutory reporting.
Contact Information
All our sales, support and development team are located in Hereford and Cheltenham in the U.K. Please submit the contact form and we will contact you within the same business day.