NEW YORK, Sept. 26, 2023 - Client Details: A leading IT company in the United States sought Quantzig's expertise to optimize their retail operations.
Challenges: Before implementing assortment optimization strategies, the client faced several challenges:
High Carry-Over Volume: Excessive unsold inventory from prior seasons tied up capital and led to markdowns, impacting profitability.
Frequent Stockouts: Inadequate inventory levels for popular sizes resulted in dissatisfied customers, missed opportunities, and reduced trust and loyalty.
High Inventory Holding Costs: Maintaining large inventories incurred substantial costs, diminishing overall profitability.
Solutions: Quantzig's assortment optimization solutions addressed these challenges effectively:
Planogram Simulation and Optimization Tool: This tool optimized store layouts and product placements to maximize sales while minimizing carrying costs.
AI-Driven Category Assortment Planner: Advanced AI algorithms optimized product categories to align with customer preferences and local demand.
SKU Rationalization and New Product Margin Rationalization Models: These models streamlined product offerings, reduced excess inventory, and improved margins on new products.
Results: Quantzig's assortment optimization strategies transformed the client's retail operations:
Reduced Carry-Over Inventory: Excessive unsold inventory and markdowns were minimized, enhancing profitability.
Improved Inventory Management: Adequate inventory levels for popular sizes reduced stockouts, improving customer satisfaction and loyalty.
Lowered Holding Costs: Optimized inventory reduced storage, insurance, and operational expenses, boosting profitability.
Enhanced Sales and Margins: Improved product placements and category optimization resulted in increased sales and higher margins.
Quantzig's expertise in assortment optimization empowered the client to overcome retail challenges, improving profitability and customer satisfaction.
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About Quantzig: Quantzig is a global data analytics and advisory firm with a strong presence in the US, UK, Canada, China, and India. We provide advanced analytics, business intelligence solutions, and data-driven insights to organizations across industries, helping them make informed decisions.
SOURCE Quantzig
