With online sales increasing, traditional allocation and forecasting methods are costing retailers millions. Inventory is not in the ideal location resulting in higher shipping costs, more markdowns, and fewer sales. Omnichannel allocation has already been shown to improve ship completes by 2x and inventory turns by greater than 250%. But how is omnichannel allocation different than traditional methods? We've highlighted 6 points of differentiation below: Customer Demand, Returns, Continuously Forecasting, Markdowns, Platform, and Experience.
With growing eCommerce channels and increased online shopping behavior, omnichannel retailers are grappling with the increased complexity brought on, in part, by current events, but more so the anticipated need to combine online and in-store merchandising, especially for the “new normal”. Siloed decisions around allocation, promotions, in-season pricing, inventory transfers and fulfillment will fail to deliver the expected margin performance unless they address the interconnectedness of online and stores.
Forecasting CPG Sales on the Amazon Channel Behemoth
on October 25, 2019
| By Jasneet Kohli & Arash Sangari
|
Demand Forecasting,
CPG,
Omnichannel,
Amazon
Consumer Goods industry is still adapting to the new rules of the game that are being set by Amazon and other e-commerce players. CPG companies' online channel is rapidly growing with 43% of CPG’s revenue growth already being driven by ecommerce and online sales expected to double in next five years.
How Artificial Intelligence Optimizes Merchandising, Pricing, and Replenishment for Omni-channel Retailers
on July 30, 2019
| By Antuit Insights
|
Pricing Analytics,
Omnichannel,
Artificial Intelligence,
Replenishment,
Merchandising
“At each step of the process, planners have access to accurate information which becomes an invaluable tool. Companies that have imbedded AI into their systems have experienced up to 6% improved gross margin and a 10% increase in sell-through,”
Traditional pricing strategies are not equipped for decision making in the omni-channel space. Fluidity of inventory across channels provides new options for increased sell-through and better customer experience. However, it also adds complexity in pricing decisions that can erode margin and leave inventory stranded in the wrong places.
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