Removing the Risk, Increasing the Payoff in Your Omniretail Inventory.
No Risk, No Reward?
Enthusiastic investors and gamblers have one thing in common: they want to win BIG. However, trying to win big requires greater risk. With a higher risk, the chances of losing are also higher. Both the investor and the gambler dream of winning big, but often want to find ways to minimize the risk of losing.
Having limited shelf space doesn’t necessarily mean limiting profit. An effective Assortment Optimization solution solves a growing retail merchandising problem.
Assortment Optimization is a powerful tool for retailers to increase profit and improve customer experience and loyalty. It combines cutting-edge machine learning techniques, an agile continuous improvement methodology, and flexible customization to accommodate unique business requirements. Like other related solutions, assortment optimization utilizes machine learning techniques and AI to find the optimal assortment for every SKU in each store location. However, assortment optimization offers other unique benefits.
AI-based systems do not always make better decisions than humans. Find out why, and how to make sure your system is getting the best of both worlds.
Man vs. Machine
When it comes to Assortment Optimization, AI (artificial intelligence) and machine learning play a key part behind the scenes. While a human perspective helps, there are two important factors that make AI very important: scale and automation. For example, a large retailer with 1,000 physical stores and 10,000 products has as many as 10 million assortment decisions to determine which stores should carry which SKUs, what quantities, and when. Even though a significant portion of product offering is chainwide, that still leaves a formidable number of micro-decisions to be made. This amount of decision-making for humans is inefficient and not very profitable.