DemandTec Markdown Optimization

Features
Downloads

Help retailers plan and optimize pricing, profit and inventory levels for items leaving the assortment

IBM® DemandTec® Markdown Optimization uses the science of Consumer Demand Management to help retailers design optimal plans for setting markdown timing and depth. This helps them maximize profitability or meet inventory on-hand objectives for virtually every clearance item in their stores. DemandTec Markdown Optimization supports a wide range of markdown types, including seasonal, short product lifecycle, event and holiday, category reset, cycle refresh and standard discount markdowns.

Optimize markdown timing and depth to help achieve inventory, profit, and revenue objectives. Makes use of one of the most advanced sciences in the industry.
Develop plans for each store, zone or chain based on store-specific customer demand. Designed to help retailers devise markdown plans based on the unique price elasticity and inventory position at each store.
Automate and streamline weekly markdown pricing processes. Using an automated workflow process, simplifies many of the manual tasks that have traditionally been part of the markdown process.

Optimize markdown timing and depth to help achieve inventory, profit, and revenue objectives.

Uses item-level modeling and optimization that captures the elasticity of each item at the store level.
Using DemandTec Markdown Optimization enables retailers to set primary and secondary goals to minimize inventory, maximize profit, or maximize revenue
Allows retailers to specify a maximum number of markdown price changes, the depth of each change, and other constraints to help ensure that markdown plans conform to retailers' policies and can be executed within existing processes and infrastructure

Develop plans for each store, zone or chain based on store-specific customer demand.

Provide retailers with the flexibility to either allow stores or zones to share the same schedule
Alternatively, DemandTec Markdown Optimization can have each store execute its own unique schedule to maximize overall plan performance
Allows retailers to create, forecast, compare and evaluate multiple markdown pricing scenarios to fine-tune markdown strategies before prices become effective in stores

Automate and streamline weekly markdown pricing processes.

Automatically creates and initiates new markdown plans and scenarios based on category or class-specific rules defined by a retailer — so that merchants can simply log into the system to review the results of planned optimizations
DemandTec Markdown Optimization is designed to help retailers closely monitor the performance of markdown plans through comprehensive reporting capabilities
Allows retailers to automate the process of weekly re-optimizations to adjust markdown intervals and tactics midway through a markdown plan, based on sales performance, to help ensure that each markdown plan ultimately meets its objectives