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Increase on-shelf availability, improve sales.
Identify products with high damage rates.
Show an accurate view of current & future shrink.
Inventory Optimization Use Cases
Historically retail and CPG companies would wait until the end of the season/quarter before analyzing the results of new products or seasonal products. Profitect’s pattern recognition can identify when abnormal behaviors occur such as high returns, poor online reviews (unstructured data), or excessive damages as early as the first days of product introduction, or the new season. This enables you to receive credits back from vendors and manufacturers before profits are lost, but more importantly increase customer satisfaction and remove the “justified” returns. Profitect’s solution also feedbacks to merchants the geographical areas of consumption for these products that are higher than normal so they could in turn change the allocation to maximize customer satisfaction and increase sales.
Profitect can identify when a product is not on the shelf and available for the customer either because of non-compliance, fraud, or other possible shrinkage root causes. When a high performing item has suddenly stopped selling and units show on hand, Profitect’s Inventory module prescribes to your store personnel an action to ensure that the item is in the proper location on the shelf and not in the backroom. This reduces lost sales opportunities and provides early shrink detection. Using our machine learning capabilities, we tag the different behaviors of the product at the specific store, finding the true positive anomalies and getting higher than 97% true positive result.
With the infrequency of physical inventory counts, you need greater visibility into the day to day occurrences within your stores. Leveraging information such as cycle count adjustments, inventory accuracy, damage, waste, markdowns, defeated sensors, traffic etc., Profitect identifies which stores are at risk for noncompliance based on these KPIs with weighted ranking and automatic identification of underperforming stores that need additional training. Combined with shrink prediction, you can reduce your cycle counts, knowing exactly which store is at high risk as well as the specific areas within the store that needs more attention.
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Total Inventory Optimization
Profitect’s Inventory module identifies profit opportunities downstream at stores/item,
midstream at the supply chain as well as upstream at merchant / vendor level, throughout the value chain. The module’s pattern analysis and machine learning quickly transforms lengthy inventory reports, compliance reports, zero sales reports, fresh item management reports, and many more into increased visibility, accuracy, waste reduction, profitability by correlating data patterns with key performance indicators (KPIs) delivering clear actions in plain languages to the different organizations in your enterprise – merchandising, planning and allocation, marketing, finance, loss prevention, and store operations.
Areas Profitect Analyzes
- Shrink Management
- On-shelf availability
- Inventory accuracy
- Out of stock
- Cycle count adjustments
- Physical inventory adjustments
- Online and in-store data
- Recipe data
- Sell by dates/expiration dates/ shelf dates/removal dates for grocery
- Fresh item management
- Unsellable’s and Waste Management
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Prescriptive Analytics is Making Waves with Retail and CPG Companies