Today, retailers across all sectors are facing a flood of industry challenges to keep up with their competitors. These include clunky legacy systems, dealing with a growing bank of business data, over-squeezed margins, and the rising cost to serve.
It’s a convoluted picture; with higher customer demands, there is an ever-growing sense of complexity in delivering expectations. Retailers are struggling to meet the increased need for speed, assess new buying formats, holding new assortments and running successful promotions.
Ultimately, retailers want to deliver the best customer experience, meet their customers’ omnichannel expectations, and to uphold their brand equity. But how?
Artificial intelligence can help
As one of the largest teams of expert data scientists in retail, Blue Yonder enables retailers to generate higher profits by using AI. Its solutions automate complex decisions across the entire value chain, taking the pressure away from human processes, and allowing the workforce more allocated time to value-adding activities.
Blue Yonder has delivered the following results for its customers:
- Up to 80% out-of-stock reductions, without increasing waste or inventory
- 10% increased product availability
- 50% fewer manual interventions
- Up to 15% increase in revenue from more optimized prices
- More than 15% increase in revenue from more optimized prices
- More than 5% improvement in profits by optimizing prices
- 20% reduction in stock levels from markdown optimization
Two ways Blue Yonder harnesses AI
1. Demand Forecast & Replenishment
Forecasting can be incredibly complex now that consumers are less predictable. Blue Yonder extracts internal data such as POS information, products, locations, and promotions, and combines it with external information like weather, holidays and events. Whilst assessing each individual business strategy and challenges, Blue Yonder delivers retailers with bespoke, automated replenishment decisions that drive revenue.
These automated replenishment decisions are delivered to retailers per store, per product on a daily basis.
“The system is capital light, reduces costs and stock levels, while also saving time for colleagues and providing a better offer for our customers.” David Potts, CEO, Morrisons
2. Price Optimization
To help retailers keep up with competitor pricing, meanwhile, Blue Yonder combines internal data like sales, promotions, brand, and products with external data such as competitor pricing, holidays, time of day. Blue Yonder then assess a retailer’s pricing policies, and applies it to the overall business strategy.
The result? Automated pricing decisions delivered to e-tailers, brick-and-mortar stores and omnichannel retailers.
“With the Blue Yonder solution, we were able to optimize our marketing processes and increase our sales. The higher frequency of price reductions allows us a much stronger focus on the needs of our customers.” Andreas Kink, CDO, Magazine zum Globus
Five reasons Blue Yonder is a world leader in AI:
1. Guaranteed speed of delivery
Blue Yonder converts multichannel demand into revenue with advanced immediacy — between three and six months.
2. Reduced complexity and saved costs
Blue Yonder enables retailers’ existing solutions to perform better and more accurately — removing the cost and time involved in replacing legacy systems.
3. Facilitating the best customer experience
The innovative AI software from Blue Yonder delivers automated decisions, liberating each store to deliver the best experience for its customers.
4. Operationalizing AI for retail
From source to shelf, Blue Yonder operationalizes machine learning to optimize the performance of products.
5. Always pushing the boundaries of AI
Blue Yonder’s solutions are delivered by one of the largest teams of retail-experienced data scientists in the software industry.
What did Blue Yonder’s customers achieve?
Blue Yonder has worked with leading retailers across Europe to streamline their operations, deliver smarter pricing strategies and enhance their customer experience.
- Magazine zum Globus’ revenue grew by 10% and its sales by 15% over the previous year
- Bonprix achieved double-digit percentage sales growth, as well as increased gross profit per article
- Morrisons reduced shelf gaps by up to 30% and reduced stock holding in-store by 2-3 days
- Natsu reduced leftover stock by 20%
- Otto experienced less end-of-season waste, lower return rates and lower shipping costs through optimized logistics
Read more results Blue Yonder’s Demand Forecast & Replenishment and Price Optimization solutions have achieved its customers.
Essentially, AI allows retailers to get ahead of their competitors, and do more with less; it’s not if but when. Blue Yonder’s transformative AI solutions for retailers are the next generation of modern retail.