Internet retailing success often comes from satisfying “long tail” demand. This means carrying an extensive product catalog with large numbers of slow movers and diverse demand behaviors. In addition, the “Amazon Effect” is pressuring ecommerce providers (both pure e-retailers and multichannel) to push their companies to deliver extended product lines, higher service levels, and faster delivery.
To compete, companies need powerful supply chain planning, but with low total cost of ownership. We help automate forecasting, inventory optimization and predictive replenishment to optimize the back-office supply chain to greatly reduce planning workload while delivering significantly improved KPIs. This includes projected product availability to maximize volume and margin, and minimizing stockouts, overstocks, clearances and markdowns.
Automated SKU-level forecasting improves forecast quality and provides new insight into demand patterns and seasonality. “Long tail” forecasting handles the most diverse product mixes, even in the face of demand volatility caused by market trends, new product launches, and the general randomness of demand. Promotion and social media event optimization leverages machine learning for demand shaping in the digital path to purchase. We can even utilize customer segmentation clustering to help you identify the promotions that your consumers love and maximize your return on marketing spend.