Buying and Allocating the right mix of product to each store is a complicated process but can mean the difference between huge sales and profits and taking margin-killing markdowns and liquidating unwanted products. Critical decisions are frequently made based on high level, historic sales numbers rather than individual item performance at the store level, resulting in poor inventory performance and customer dissatisfaction.
One Executive Director of Planning for a specialty apparel retailer, in particular, can relate to this scenario all too well. Early on in the spring season, this retailer started encountering significant inventory balance problems and slower than expected sales. The problem was identifying the root cause buried in the mounds of sales and inventory data.
With the help of QuantiSense’s Retail Exception Engine, it was determined that the root cause of the stockouts was incorrect size curves in their short assortment across several stores causing stockouts in key sizes and overstocks in others. Furthermore, a dive into historical data showed that the same problem had happened in previous years. With the correct size curve in the right locations, the retailer is no longer experiencing these problems -- and was able to leverage new insights to improve performance of both new product introductions and merchandise with prior sales history.
With QuantiSense’s Localized Assortment Plays, buyers and planners have an automated scoring machine that analyzes assortments and items, store by store, across a number of performance areas. It provides the knowledge required to make significant improvements in assortment mix and balance, ultimately driving higher sales, margins and inventory productivity
Imagine having the power to automatically score items in each assortment at each store, every week. Augmenting your existing assortment planning and allocation systems – including JDA, Oracle/Retek or even Excel.