assortment planning & optimization

Fulfill customer needs and increase store sales, profit, inventory turnover with optimal product mix.

We developed AI software which ensures Optimal Assortment development - both at macro and SKU levels. It is achieved using Data Science and Machine Learning algorithms enabling at the same time concider customer needs, store financial targets, product merchandising rules, capacity constraints, suppliers' cooperation terms, market oportunity.

Macro – level product mix

Prepare category assortment strategy
SUMATUS will recommend quantity of assortment matrices in each category, their width and structure at product attribute level (price, taste, size, color, model, etc.).

Allocate each store space to different merchandise categories
SUMATUS will recommend allocate appropriate store space to each department, section, category as well as assign appropriate category assortment matrix.

Allocate appropriate category assortment matrix in the new store
SUMATUS will recommend grouping existing stores into category specific clusters according to store size and location attributes in order to select the most appropriate assortment matrix.

Be sure about the optimal assortment mix at any point of time
SUMATUS will provide automatic alerts about the need of corrective actions when significant and permanent deviations from existing assortment mix will be identified.

SKU – level product mix

Choose correct SKUs in each category assortment matrix
SUMATUS will provide listing/delisting recommendations in order to maximize shopper satisfaction and sales considering customer localized demand, assortment strategy, product substitution rules.

Allocate appropriate space for each SKU
SUMATUS will provide space allocation recommendations in order to maximize store financial targets considering SKU profitability, commercial terms with suppliers, product merchandising and elasticity to space rules.

Prepare in-store visual merchandising guidelines
SUMATUS will recommend how many facings to give to SKUs in order to maximize shelf space productivity, ensure visibility, appropriate shelf stock and avoid Out of Stock.
Take informative decisions in all the times
SUMATUS will help simulate “what if…” scenarios and evaluate decision’s effect to sales, gross profit, inventory turnover before its implementation – listing/delisting, shelf space changes, understand purchase power during negotiations with suppliers, etc.

FEATURES

Optimization options

sales
gross profit (incl. retro discounts, logistics and WC cost)
inventory turnover

Forecasting base demand considered

phantom inventory
Out of Stock
promo cannibalization
unusual items

Recommended decisions and estimated effects

simulation of scenarios "what if…"
estimate of decision outcome before its implementation
automatic early warnings, insights, recommendations

Cooperation terms with suppliers considered

retro discounts
shelf share
order and delivery terms

Spotted rules & effects

item substitution
item elasticity to merchandising space
item promo cannibalization

Store space and fixtures considered

capacity constrains
efficiency

Defines category and store optimal assortment

assortment strategy - quantity of assortment matrices, their width and structure at product attribute level
optimal assortment at SKU level
visual in-store merchandising guidelines with facings and shelf stock;
local assortments & regional SKUs

Product merchandising rules considered

replenishment frequency
all stock just in sales area
merchandising in units, secondary packaging
stacking on each other
supplier/brand/SKU shelf share
product lifetime

WHY US

Satisfied customers:

Localized assortment
Satisfied maximum shopper needs
Higher On-Shelf Availability

Better financial results:

Higher sales up to 4%
Higher gross profit margin up to 2.5 pp
Less capital invested in stock for about 10 – 20%

EFFECTIVE assortment MANAGEMENT:

Faster data - driven decision making. Automated category manager's work
Efficient utilization of store and shelf space
Shoppers' needs satisfied with less quantity of SKUs
Evaluation of decision effectiveness before its implementation
Understanding purchasing power during negotiations with suppliers