NRF 2019: Retail's Big Show Michael Feindt, Founder and Chief Scientific Officer, Blue Yonder Desikan Madhavanur, EVP and Chief Product Development Officer, JDA Software

1. Retail AI at Work:
How Leading Retailers are Using
AI to Optimize Pricing & Inventory
to Deliver Increased Revenues
Desikan Madhavanur & Professor Dr. Michael Feindt

3. JDA’s Focus is on Delivering Exponential Customer
Success Through AI/ML & SaaS-led Innovations
Innovative History
400+ patents and THE market-leading
end-to-end solution portfolio
Innovative SaaS and AI/ML Roadmap
JDA LuminateTM and BlueYonder
Innovative Vision
Powering the Autonomous Supply ChainTM
Innovative Investments
JDA Experience Centers 100+ data scientists

4. Cognitive Demand
Digital Control Tower
AI/ML-led Lifecycle Pricing
Personalized Assortments
Workforce Management
Dynamic Tasking
Empowered
Workforce
Satisfied
Customers
Optimized
Inventory
Transformed
Product Delivery
…Delivering A Seamless,
Reimagined Customer Experience

5. JDA and Blue Yonder
Cognitive solutions across ALL segments, solutions & verticals
+
Granular Plan
Store – SKU level
Consumer Data
POS – Zip level
Fresh Focus
Shelf life, Availability
Replenishment
Availability, Daily
Intraday Delivery
Load Building
Markdowns
Localized Plans

6. Within Enterprise-AI Happening in Supply Chain
Potential
economic value
creation from
AI in the next
20 years
McKinsey estimates
that firms will derive
between $1.3trn and
$2trn a year in
economic value from
using AI in supply
chains and
manufacturing

7. Vision: AI-Based Automation and Optimization
from Consumer to Manufacturing

8. Many predictions / optimizations /
recipes —> automate!

9. AI in Retail Supply Chain
99% Automation
Write-offs / waste
Freshness
Capital
Out-of-stock
Turnover
Efficiency

10. AI in Retail Pricing
Automation
Market Share
Turnovers
Raw Profit
Customers/New Customers
Returns
Complaints
Rests at End of Season
99%
0

11. Morrisons Use Case
AI-Enabled Business Results
“… our customer satisfaction improved year-on-year by 5%. This
independent survey scores Morrison’s especially high on service
availability and the quality of our fresh food. Our new automated stock
ordering system is also improving availability and freeing up time for
our colleagues to serve customers better.”
- David Potts, CEO
99% 30% 2-3
Store Replenishment
Automation
Rate
Reduction of
Shelf Gaps
Days Reduction
of Inventory

12. Ernsting’s Use Case
Markdown Optimization at 1,850 Stores
“With Blue Yonder, we’ve found a partner that enables us to implement
our digital strategy for pricing: Our margins on selected items have
already increased within our five-month test. As a result, we decided to
enter into a long-term partnership with Blue Yonder.”
- Horst Beeck, Chief Financial Officer, Ernsting’s
Short collection
cycles
Increase of
relative margins
Sell new collections within
determined timeframe
High pressure to
sell items quickly
90+% of an item sold within a
defined period of time
Challenges
Goals Results

13. bonprix Use Case
AI-based Price Optimization
Optimization through AI technology
Starting position
Too high prices for
many products in the
highly-competitive
Russian market
AI-based solution
A machine learning
solution that delivers
optimized pricing
decisions for every
product
Result
Increased demand
and higher gross
profits

14. Actionable Takeaways from this session:
Retail AI at Work! Massive customer benefits:
1. personalized merchandising > increases
customer satisfaction and brand loyalty
2. complete lifecycle pricing > drives customer
demand, satisfaction and revenue
3. optimized inventory > increases margins,
sales and profits, reduces waste