Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Predictive Analytics Demo Series: Optimizing Merchandise Financial Planning

531 views

Published on

We discuss and demo how to use predictive analytics to optimize the merchandise planning process.

For the full webcast replay: https://www.celect.com/merch-financial-planning-webcast-replay

Published in: Retail
  • Login to see the comments

Predictive Analytics Demo Series: Optimizing Merchandise Financial Planning

  1. 1. Predictive Analytics Demo Series Optimizing Merchandise Financial Planning
  2. 2. Agenda • Introduction to Celect • Current State of Retail • Understanding Customer Choice • A Prescriptive Retail Process • DEMO – Optimizing Merchandise Financial Planning © 2016 Celect, Inc. All Rights Reserved.2
  3. 3. THE WAY YOU USE YOUR DATA HAS FUNDAMENTALLY CHANGED © 2016 Celect, Inc. All Rights Reserved.3
  4. 4. Current state of retail © 2016 Celect, Inc. All Rights Reserved.4 Retailers are Awash in Data Inventory, PoS, browse history, transaction logs, search, etc. Online/Offline are Blurring Merchants often have responsibility for both online and in-store Need for Growth Opportunities Improved Allocation, Buy Accuracy, Assortment Planning
  5. 5. © 2016 Celect, Inc. All Rights Reserved.5
  6. 6. There’s a better way © 2016 Celect, Inc. All Rights Reserved.6 Bring Science to the Art of Retail • Supplement your experiences, knowledge, and intuition with machine learning • Leverage the data you already have Predicting Customer Choice • How products interact and influence each other • Assortment Planning, Buy Accuracy, & Allocation
  7. 7. The evolution of predictive analytics in retail © 2016 Celect, Inc. All Rights Reserved.7 Basic reporting on historical data (Excel) REPORTING What happened? ANALYSIS Why did it happen? Business Value Complexity MONITORING What’s happening now? PREDICTIVE What might happen? Stats based on traditional metrics (Excel) Decision support via machine learning Dashboards, traditional planning tools Provides foresight into making decisions happen
  8. 8. What kind of foresight? © 2016 Celect, Inc. All Rights Reserved.8 We sold out of a particular product in Store 28 WHAT WAS THE RIGHT ALLOCATION? We have never sold a particular product in Store 58 HOW WELL WOULD IT SELL THERE? We are looking to add a new brand in to a set of stores WHAT IMPACT WILL THAT HAVE ON STORE SALES?
  9. 9. A prescriptive retail process Plan Buy Allocate Sell Liquidate © 2016 Celect, Inc. All Rights Reserved.9 What product and how much should I buy? Did I over-buy or under-buy? Is the product in the right stores? Did I maximize full price sell- through? How much margin did we lose? Prescriptive Decisions Optimized Assortments Optimized Allocation Engaged Customers Optimized Markdown
  10. 10. A prescriptive retail process Plan Buy Allocate Sell Liquidate © 2016 Celect, Inc. All Rights Reserved.10 What should my financial targets be for a given timeframe, location, or merchandising hierarchy? Planning system of record integration Prescriptive Decisions Optimized Assortments Optimized Allocation Engaged Customers Optimized Markdown
  11. 11. DEMO! © 2016 Celect, Inc. All Rights Reserved.11
  12. 12. Thank you! © 2016 Celect, Inc. All Rights Reserved.12 www.celect.com/ blog.celect.com Follow us on Twitter! @celect

×