Retail Week Tech Summit 2012 presentation by Ziad Nejmeldeen
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Entire contents © 2011, Quantum Retail Technology, Inc. Entire contents © 2012, Quantum Retail Technology, Inc. Retail is tough today...and yet retailers that know where to look can significantly change the game! Sept 25, 2012
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Ziad Nejmeldeen, vice president of science at Quantum Retail, gave a presentation at the Retail Week Technology Summit 2012 in London, England. He focused on 3 customer case studies and how retailers can change the game in retail.
Transcript of Retail Week Tech Summit 2012 presentation by Ziad Nejmeldeen
Entire contents © 2011, Quantum Retail Technology, Inc. Entire contents © 2012, Quantum Retail Technology, Inc.
Retail is tough today...and yet retailers that know where to look can significantly
change the game!
Sept 25, 2012
Entire contents © 2011, Quantum Retail Technology, Inc. Entire contents © 2012, Quantum Retail Technology, Inc.
Introduction
10 years working with retailers
Econometrics PhD, MIT
VP Science
Entire contents © 2011, Quantum Retail Technology, Inc. Entire contents © 2012, Quantum Retail Technology, Inc.
Dynamic Forecasting
Inventory Strategy
Profit Focused
Simplicity
1. Product Variety 2. Self-Learning 3. Seasonality, Lifecycle, DOW,
Events
1.Business Driven 2.SKU / Store 3.Simulation Optimised
1.Making The Most Profit 2.Location Margin Awareness 3.Total Lifecycle View
1.Alerts & Workflows 2.Crisp Interface 3.Built For Retail
Entire contents © 2011, Quantum Retail Technology, Inc. Entire contents © 2012, Quantum Retail Technology, Inc.
PROJECT DRIVERS
strongly. We maintained our focus on freshness, speciality and
Marc Bolland - Chief Executive May 2012 Full Year Results
Improve availability and customer service Reduce waste, especially in short-life merchandise Presentation minimums (ambient) Real time decision making User efficiency
Product Strategies
Entire contents © 2011, Quantum Retail Technology, Inc. Entire contents © 2012, Quantum Retail Technology, Inc.
Product Strategies Less Waste More Availability
Entire contents © 2011, Quantum Retail Technology, Inc. Entire contents © 2012, Quantum Retail Technology, Inc.
WHAT WE DID DIFFERENTLY
Strategies focus on balancing waste/availability Profit maximisation but users can make adjustments Business constraint adherence Targeted alerts Uncovering new opportunities in range & tray-size
Product Strategies Results: Availability + 2% Waste - 10% UK Food Sales L4L + 2.1%
Entire contents © 2011, Quantum Retail Technology, Inc. Entire contents © 2012, Quantum Retail Technology, Inc.
PROJECT DRIVERS
Simon Michell Tally Weijl CFO
Stock imbalances cause high markdowns Missed geographic nuances Difficult to manage fast fashion, collections and basics Painful & expensive growth
Localisation
Entire contents © 2011, Quantum Retail Technology, Inc. Entire contents © 2012, Quantum Retail Technology, Inc.
Localisation
Countries
Regions
Entire contents © 2011, Quantum Retail Technology, Inc. Entire contents © 2012, Quantum Retail Technology, Inc.
WHAT WE DID DIFFERENTLY
Localisation
Seasonality captures geographic differentiation Lifecycle captures short-life trends Product strategies Profit maximisation (esp. during scarcity)
Pilot Results: Fast Fashion Sales + 2% Basic Fashion Sales + 5% Markdown Reduction 30M
Entire contents © 2011, Quantum Retail Technology, Inc. Entire contents © 2012, Quantum Retail Technology, Inc.
Need to handle large volumes of one-shot allocations Location-specific size differentiation Inventory recommendations for re-buys Automated, efficient, user-friendly
Initial Allocation
PROJECT DRIVERS
Head Of BIOS
Nordstrom
Entire contents © 2011, Quantum Retail Technology, Inc. Entire contents © 2012, Quantum Retail Technology, Inc.
Initial Allocation
Entire contents © 2012, Quantum Retail Technology, Inc.
Store Ratio = 2.3
Store Ratio = 2.6
13% Inventory Difference
Entire contents © 2011, Quantum Retail Technology, Inc. Entire contents © 2012, Quantum Retail Technology, Inc.
Size Optimization service Buy Validation Range feature Simulation optimised target inventory
Initial Allocation
WHAT WE DID DIFFERENTLY
Pilot Results: Sales Unit Increase + 4% Sales Revenue + 5% Availability + 4%
Entire contents © 2011, Quantum Retail Technology, Inc. Entire contents © 2012, Quantum Retail Technology, Inc.
Changing The Game
Inventory adjustments can be hugely profitable
Unlock value in the most relevant areas
Seek to combine as many aspects as possible
Understand your opportunity size
Simplicity should never be underestimated
Dynamic Forecasting
Inventory Strategy
Profit Focused
Simplicity
Entire contents © 2011, Quantum Retail Technology, Inc. Entire contents © 2012, Quantum Retail Technology, Inc.
THANK YOU
