Recommend best assortment optimization to boost sales with shopper-centric analytics
IBM® Assortment Optimization, formerly DemandTec® Assortment Optimization, helps retailers determine the appropriate items to stock by cluster, store or planogram size. The determination is based on the customers who shop in each store, the competitive environment and a quantified understanding of which items truly drive incremental sales by adding needed variety to the category. IBM Assortment Optimization helps retailers improve variety in their assortments, rationalize SKU counts, localize product offerings and make strategic assortment decisions to increase loyalty.
- Improve assortment optimization decisions using a science-based analysis of shopper behavior and a quantitative understanding of incrementality and transferable demand.
- Collaborate with trading partners using a cloud-based, software-as-a-service (SaaS) delivery model.
- Increase merchant productivity with a retailer-friendly design.
Improve assortment decisions
- Incorporates advanced modeling and optimization science with analysis of market, loyalty card, planogram and cost data to help retailers create more efficient, customer-centric assortments.
- Relies on science-based analysis of shopper behavior to identify the relative importance of product attributes and the actual switching behavior of consumers.
- Uses a quantitative understanding of incrementality—an item’s ability to increase overall category sales, rather than cannibalizing the sales of other items.
- Includes value of a facing—the ability to weigh the incremental benefit of adding an additional facing versus adding an additional SKU.
- Allows retailers and trading partners to weigh different assortment scenarios and deliver specific assortment recommendations that quantify the impact of added and delisted products on the sales of each remaining item and on the total category.
Collaborate with trading partners
- Enables retailers and manufacturers to jointly evaluate and optimize the assortment for virtually every store cluster and configuration with a single approach, consistent objectives and extensive analytics.
- Uses a cloud-based, SaaS delivery model for near real-time collaboration among retailers, distributors and manufacturers.
- Allows definition and evaluation of assortment requirements at the shopper segment level.
- Provides tracking, modeling and forecasting of demand for each shopper segment to help merchants define strategies for high-value shoppers and prioritize their needs appropriately in the final assortment recommendation.
- Allows merchants to combine their optimization goals with additional controls to help ensure that optimized assortments balance retailer and manufacturer objectives and align with company strategies.
Increase merchant productivity
- Features automated processes to address the kinds of assortment challenges merchants face daily.
- Guides merchants though common merchandising scenarios such as category reviews or transitions, increasing or decreasing SKU count and space, and making one-in-one-out changes to assortments.
- Provides merchants with access to an extensive report library that provides a detailed understanding of how assortment changes affect their business.
- Incorporates current planograms to define current assortment, effective dates and space; optimize space-aware assortment, including days of supply and casepack constraints; account for value of a facing, including out of stock impact and facings elasticity; and export recommendations to file for upload into space planning software for additional merchandizing and automation.