Effective Management of Promotional Products: A Case Study on Avoiding Excess and Shortage 

Why Promotional Products Require Special Attention? 

Promotional campaigns are a powerful tool for increasing sales, attracting new customers, and boosting brand recognition. However, poor management of promotional products can lead to serious problems for retailers:

• Demand fluctuations: In the first days of the promotion, a product may sell much faster than usual, but by the end, interest may sharply decline.
• Risk of shortage: If promotional products sell out too quickly, customers will not be able to purchase them, negatively affecting customer loyalty.
• Risk of excess: Incorrect stock calculations lead to leftover products after the promotion ends, resulting in write-offs and decreased profitability.
• Safety stock and misdistribution: Many retailers are forced to increase safety stock before a promotion, but without precise analysis, this can lead to overspending.

To avoid these problems, managing promotional products must be accurate, flexible, and automated.

How ABM Inventory Helps Manage Promo Stock  

ABM Inventory is not just a tool for demand forecasting. The system allows retailers to not only prepare correctly for the promotion but also to react flexibly to changes in demand and evaluate its effectiveness after the campaign ends.

1. Sales Forecast and Preparation for Promotion Launch  

Before the promotion starts, the system creates a sales forecast using machine learning (ML) models.
These models consider numerous factors that may affect demand, such as:

• Historical sales of similar promotions,
• Seasonality and trends,
• Effectiveness of previous promo campaigns,
• Price levels and the competitive environment,
• Regional characteristics of stores.

This allows retailers to calculate initial stock accurately and avoid situations where they either have too little or too much stock.

2. Flexible Response to Actual Demand During the Promotion 

During the promotion, ABM Inventory tracks sales in real-time and recalculates the necessary stock for each store.

If demand for the product exceeds expectations, the system:  

• Automatically increases orders to avoid stockouts,
• Redistributes products between stores to maintain availability balance.

If demand is lower than forecasted, the system:

• Adjusts supply volumes to avoid excess stock,
• Helps prevent the situation where leftover promotional products after the campaign become a problem for the retailer. 

3. Optimizing Safety Stock 

One of the biggest issues retailers face is excessive safety stock. ABM Inventory helps: 

• Accurately determine when to increase stock and when to decrease it,
• Optimize additional supply volumes to avoid keeping excess products in the network,
• Timely remove products from promotion to avoid accumulating unsellable stock.

4. Evaluating the Effectiveness of the Promotion 

After the promotion ends, ABM Inventory analyzes results based on key metrics:

• Comparing planned vs. actual sales,
• Analyzing the turnover of promotional products,
• Evaluating lost sales (where and why products ran out),
• Assessing excess stock after the promotion.

Thanks to this analysis, retailers gain real insights into the effectiveness of the campaign and can optimize future promotions to make them more profitable. 

5. Proactive Support from the Customer Success Team (CST)

Automation is only part of the success. The Customer Success Team (CST) actively monitors the results of promotions and helps clients set up the system to ensure:

• Stock levels remain optimal throughout the promotion period,
• Clients can adjust parameters in real-time without waiting for the promotion to end,
• After the promotion ends, stock does not exceed acceptable levels.

Case Study: How a Retailer Optimized Promo Stock 

Let’s look at a real case where ABM Inventory helped one of our clients optimize promotional product management and achieve significant results. After implementing ABM Inventory, one of our clients saw tangible results in the promotional product category: 

-16% reduction in leftover stock after the promotion – thanks to accurate calculation of initial stock and order adjustments during the process.

-30% reduction in lost sales – due to proper product distribution and preventing stockouts.

+15% increase in availability – promotional products were always available in stores, boosting sales and customer satisfaction.

Tips for Retailers 

1. Do not calculate promotional product volumes manually – automation takes all factors into account and helps avoid human errors.
2. Monitor real-time demand – promotional sales change daily, so inventory must be adjusted promptly.
3. Do not overload warehouses with “just-in-case” stock – optimize safety stock to avoid excess.
4. Work with data and analytics – proper setup and constant monitoring help achieve maximum promotional success.
5. Leverage proactive support – CST experts will help you properly configure the system and achieve the best results.

In general, the article is well-written and should be suitable for an English-speaking audience with no critical issues.