interStore

Interstore refers to the practice within retail and logistics where inventory is moved between stores within the same chain to balance stock levels and meet customer demand. It enables transfers of goods from stores with excess stock to those experiencing shortages, reducing stockouts and optimizing working capital.

The process typically begins when a store identifies a shortage or surplus. A transfer request is created in the store management or ERP system, specifying item, quantity, and target store. The origin store picks, packs, and labels the items; transportation is arranged by a logistics unit or carrier. Upon arrival, the receiving store counts and receipts the items, and inventory records are updated. Transfers may be planned as part of an interstore replenishment cycle or triggered by point-of-sale signals.

Systems involved include ERP or store-management software with interstore transfer modules, sometimes integrated with warehouse management systems and transportation management systems. Data visibility across stores is maintained through these systems, with audit trails and reconciliation processes.

Benefits of interstore transfers include improved service levels, faster replenishment, and better overall inventory turnover. Key metrics used to evaluate performance include fill rate, transfer lead time, stock balance variance, and transfer accuracy. Challenges can include transportation costs, lead times, potential stock misplacements, damage risk, and the need for accurate data across multiple locations.

Interstore transfers are a common component of retail distribution and omnichannel fulfillment, helping chains adapt to regional demand and optimize stock across their store network.