AI-Powered In-Season Inventory Optimization: Maximize Margins and Profits
Ensure your inventory is always in the right place, at the right time, and at the right price with ToolsGroup’s AI-driven In-Season Inventory Optimization solution. Trusted by leading global retailers, our solution helps increase full-price sell-through, boost revenue, and improve inventory efficiency while minimizing stockouts and markdowns.
In-Season Inventory Optimization Achieves:
In-Season Inventory Optimization Can Achieve:
15%
Increase in Full-Price Sell-Through
5%
Revenue Growth
15-30%
Improvement in Inventory Efficiency
20%
Increase in Inventory Turns
Why Optimize Inventory In-Season?
Retailers face tighter working capital constraints and inventory-to-sales ratios have hit record highs. Misallocating stock or relying on heavy markdowns to clear excess inventory can erode margins and working capital. To thrive amid market uncertainty, it’s essential to react quickly and adjust to real-time demand fluctuations. ToolsGroup’s In-Season Inventory Optimization adapts dynamically to these challenges, helping retailers maintain profitability no matter the circumstances.
Unlock In-Season OptimizationChallenges Solved by In-Season Inventory Optimization:
Waste and Overstock:
High markdowns and frequent promotions erode margins and reduce working capital.
Stockouts and Missed Sales:
Availability gaps lead to lost revenue and damage customer perception.
Low Sell-Through and Inventory Imbalances:
Poor responsiveness to demand leads to stock misallocation and low turnover rates.
How ToolsGroup's Solution Delivers Results:
Our AI-powered solution combines proven products into a unified platform that addresses your unique in-season inventory challenges:
Dynamic Allocation:
Allocate the right SKUs, in the right quantities, at the right time to optimize inventory turns.
Dynamic Replenishment:
Respond instantly to demand fluctuations with automatic real-time inventory sensors that maintain ideal stock levels
Data Hub:
Achieve full inventory visibility with zero-latency tracking to reduce stockouts and optimize product availability.
RebalanceAI:
Maximize sell-through by dynamically transferring inventory between stores to where it will sell fastest.
MarkdownAI:
Boost margins by optimizing end-of-season markdowns, ensuring profitability and reducing margin pressure.
for fast adjustments to changing market conditions. This ensures that you consistently hit your goals, even amid supply chain disruptions and fluctuating customer demand.
What Does Optimized Inventory Management Look Like?
Maximize Turns, Minimize Waste:
Allocate intelligently for higher inventory turns and reduced waste with minimal missed sales.
AI Replenishment:
Real-time replenishment adapts to even subtle changes in demand, such as social trends or weather patterns.
Say Goodbye to End-of-Season Waste:
Full inventory visibility helps reduce stockouts and clear end-of-season inventory efficiently.
Dynamic Inventory Management:
Achieve more sales with less inventory by dynamically shifting stock across your network.
Smarter Markdowns, Higher Margins:
Increase in-season margins by up to 5.5 percentage points with optimized full-price sell-through and markdown strategies.
Maximize Profit with Agility:
Rapidly respond to market changes to ensure profitability and strong GMROI (Gross Margin Return on Investment).
Success Stories from Leading Retailers
Discover how retailers around the world are leveraging ToolsGroup’s In-Season Inventory Optimization capabilities to maximize GMROI and achieve significant returns on working capital invested in inventory.
I’m excited to share one of the many ways Abercrombie & Fitch Co. strives to provide customer satisfaction and how ToolsGroup helps us achieve some of those goals.”
- Monica Tatham, Senior Director for Enterprise Business Solutions
Challenges
- Difficult to support regional autonomy while adhering to overall company strategy
- Need to drive sales and margin across all categories
- Desire to optimize inventory and build a more customer-centric assortment
Results
- Improved sales and margin
- More efficient assortment architecture
- Enhanced customer satisfaction
We had always seen markdowns as a necessary evil—and a frustratingly inefficient one at that. With Evo, however, markdowns have become a critical lever for change across both inventory management and pricing. Evo changed our whole outlook on markdowns.”
- Marcello Pace, CEO of PittaRosso
Challenges
- High levels of unsold inventory from legacy collections
- Outdated inventory clogging shelves and harming brand
- Size fragmentation slowing sales
- Markdowns no longer having desired impact, even with incredibly high discounts
- Lack of responsivity to demand in legacy software
Results
- 14.3% increase in sell-through
- 21.4% reduction in previous season overstock
- €4.2 million margin growth
- 4.1 million more units sold in one season
Partnering with Evo gave us access to troves of data on local consumer behavior and a cutting-edge AI …that can analyze this data in combination with our internal data to get the right products in the right sizes at the right location at the right time.
- Alessandro Pozzi, Boggi COO
Challenges
- Rapid international expansion meant in-house inventory management systems could no longer sustain growth
- The unpredictability of demand in new geographies limited inventory efficiency
- Both Increased stockouts and unsold inventory
- Dropping inventory productivity
Results
- 18.2% increase in inventory efficiency
- 4% increase in like-for-like sales
- 12% reduction in inventory levels without stockouts
- 72% fewer allocation errors
- 47% improvement in product availability
Evo has been our top innovation of 2016. An impact that has far exceeded our expectations, delivered professionally.
- Francesco Cavarero, CEO of Miroglio Fashion
Challenges
- Many short-lived, volatile, slow-selling items
- Challenges in accurately forecasting item demand at the store level
- Unbalanced sales across the network, creating extended shelf life
- A history of unsuccessful consulting and software implementations
Results
- 25 pp increase in allocation efficiency
- 20% increase in sales
- 30 pp increase in sell-through
- €1m/month incremental margin
