predictive analytics demo series: optimizing merchandise financial planning
TRANSCRIPT
![Page 1: Predictive Analytics Demo Series: Optimizing Merchandise Financial Planning](https://reader038.vdocuments.mx/reader038/viewer/2022100807/587bf2fd1a28ab765a8b74f3/html5/thumbnails/1.jpg)
Predictive Analytics
Demo SeriesOptimizing Merchandise Financial Planning
![Page 2: Predictive Analytics Demo Series: Optimizing Merchandise Financial Planning](https://reader038.vdocuments.mx/reader038/viewer/2022100807/587bf2fd1a28ab765a8b74f3/html5/thumbnails/2.jpg)
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
![Page 3: Predictive Analytics Demo Series: Optimizing Merchandise Financial Planning](https://reader038.vdocuments.mx/reader038/viewer/2022100807/587bf2fd1a28ab765a8b74f3/html5/thumbnails/3.jpg)
THE WAY YOU USE YOUR DATA HAS
FUNDAMENTALLY CHANGED
© 2016 Celect, Inc. All Rights Reserved.3
![Page 4: Predictive Analytics Demo Series: Optimizing Merchandise Financial Planning](https://reader038.vdocuments.mx/reader038/viewer/2022100807/587bf2fd1a28ab765a8b74f3/html5/thumbnails/4.jpg)
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
![Page 5: Predictive Analytics Demo Series: Optimizing Merchandise Financial Planning](https://reader038.vdocuments.mx/reader038/viewer/2022100807/587bf2fd1a28ab765a8b74f3/html5/thumbnails/5.jpg)
© 2016 Celect, Inc. All Rights Reserved.5
![Page 6: Predictive Analytics Demo Series: Optimizing Merchandise Financial Planning](https://reader038.vdocuments.mx/reader038/viewer/2022100807/587bf2fd1a28ab765a8b74f3/html5/thumbnails/6.jpg)
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
![Page 7: Predictive Analytics Demo Series: Optimizing Merchandise Financial Planning](https://reader038.vdocuments.mx/reader038/viewer/2022100807/587bf2fd1a28ab765a8b74f3/html5/thumbnails/7.jpg)
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
![Page 8: Predictive Analytics Demo Series: Optimizing Merchandise Financial Planning](https://reader038.vdocuments.mx/reader038/viewer/2022100807/587bf2fd1a28ab765a8b74f3/html5/thumbnails/8.jpg)
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?
![Page 9: Predictive Analytics Demo Series: Optimizing Merchandise Financial Planning](https://reader038.vdocuments.mx/reader038/viewer/2022100807/587bf2fd1a28ab765a8b74f3/html5/thumbnails/9.jpg)
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
![Page 10: Predictive Analytics Demo Series: Optimizing Merchandise Financial Planning](https://reader038.vdocuments.mx/reader038/viewer/2022100807/587bf2fd1a28ab765a8b74f3/html5/thumbnails/10.jpg)
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
![Page 11: Predictive Analytics Demo Series: Optimizing Merchandise Financial Planning](https://reader038.vdocuments.mx/reader038/viewer/2022100807/587bf2fd1a28ab765a8b74f3/html5/thumbnails/11.jpg)
DEMO!
© 2016 Celect, Inc. All Rights Reserved.11
![Page 12: Predictive Analytics Demo Series: Optimizing Merchandise Financial Planning](https://reader038.vdocuments.mx/reader038/viewer/2022100807/587bf2fd1a28ab765a8b74f3/html5/thumbnails/12.jpg)
Thank you!
© 2016 Celect, Inc. All Rights Reserved.12
www.celect.com/
blog.celect.com
Follow us on Twitter! @celect