predictive analytics demo series: optimizing merchandise financial planning

Predictive Analytics

Demo SeriesOptimizing Merchandise Financial Planning

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

THE WAY YOU USE YOUR DATA HAS

FUNDAMENTALLY CHANGED

© 2016 Celect, Inc. All Rights Reserved.3

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

© 2016 Celect, Inc. All Rights Reserved.5

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

The evolution of predictive analytics in retail

© 2016 Celect, Inc. All Rights Reserved.7

Basic reporting on historical data (Excel)

REPORTINGWhat

happened?

ANALYSISWhy did it

happen?

Business Value

Com

ple

xity

MONITORINGWhat’s happening

now?

PREDICTIVEWhat might

happen?

Stats based on traditional metrics (Excel)

Decision support via machine learning

Dashboards, traditional planning tools

Provides foresight into making decisions happen

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?

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?

PrescriptiveDecisions

Optimized Assortments

Optimized Allocation

Engaged Customers

Optimized Markdown

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

DEMO!

© 2016 Celect, Inc. All Rights Reserved.11

Thank you!

© 2016 Celect, Inc. All Rights Reserved.12

www.celect.com/

blog.celect.com

Follow us on Twitter! @celect