Management One’s Post

European grocery retailers face record margin pressure as consumers shift to discount formats. To succeed in 2024, retailers must adopt advanced demand analytics, use customer data for insights, and embrace should-cost models for cost breakdowns. Generative AI is also gaining traction for data summarization and drafting supplier letters. Supplier Negotiations 3.0 is here, with a new approach and tools for retail control. Read More> https://owy.mn/3Epp0dK  

🛒 Revolutionizing Retail: AI-Powered Strategies for Rising Costs 📈 📊 According to a recent Boston Consulting Group (BCG) survey, the top challenge retailers face is the rising cost of goods. 💡 In the short term, some retailers resort to temporary levers like price hikes and supplier renegotiations – tactics that can potentially harm the brand. 🤖 However, there's a smarter way. By leveraging AI for pricing, retailers can shift from a one-size-fits-all approach to one that's as unique as each individual customer, store, or channel. 📊 Take a look at the breakdown of the total effort implemented by BCG for a North American grocery retailer: •10% for building an AI-driven pricing tool. •20% for developing an integrated technology ecosystem. •𝐖𝐡𝐚𝐭'𝐬 𝐦𝐨𝐬𝐭 𝐢𝐧𝐭𝐞𝐫𝐞𝐬𝐭𝐢𝐧𝐠 𝐢𝐬 𝐭𝐡𝐞 𝐟𝐢𝐧𝐝𝐢𝐧𝐠 𝐭𝐡𝐚𝐭 𝟕𝟎% 𝐨𝐟 𝐭𝐡𝐞 𝐞𝐟𝐟𝐨𝐫𝐭 𝐰𝐞𝐧𝐭 𝐢𝐧𝐭𝐨 𝐭𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐢𝐧𝐠 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐩𝐫𝐨𝐜𝐞𝐬𝐬𝐞𝐬 𝐚𝐧𝐝 𝐜𝐚𝐩𝐚𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬 (selectively increasing and reducing prices in local contexts). 💼 Business Impact: •Increased +4-5% gross profit amid rising costs. •+𝟐-𝟓% sales lift in the first year. 🚀 While prioritizing AI use cases, explore options for adopting changes to processes to integrate results into business workflow. Interestingly, organizations that extensively change business processes during AI integration are five times (5X) more likely to realize significant financial benefits. 💼💡 We'd love to hear from you: What percentage of effort do you allocate to AI initiatives for transforming business processes? #AI #Retail #AIStrategy #BusinessTransformation 🌐

Retailers are struggling to keep up with the evolving retail landscape, customer's increasing expectations and their decreasing patience, all while continuing to try and increase profits. Moving from a traditional service-level-driven model to a profit-optimisation model is the best way to modernise your inventory operations. To keep up with these expectations, retailers have no choice but to reimagine, streamline and simplify complex inventory planning processes. After all, it’s every retailers’ dream to have the right amount of inventory at the right place at the right time without having excessive inventory or losing sales. To achieve that, retailers need to take advantage of adaptive, smart analytics and explainable AI models. They need to move from a traditional service level approach and upgrade their inventory decisions from a judgment-driven, KPI-measured process to a financial-optimisation model. Using sophisticated models such as AI-powered profit optimisation, you can increase stock availability, reduce inventory holding cost and don’t have to choose between profitability and customer satisfaction. Retailers, does this resonate? #Retail #InventoryManagement #AI #ProfitOptimisation #Supplychain #cx Invent Analytics

## AI Revolutionizes Retail Inventory Management: A Case Study The retail industry thrives on keeping customers happy, and that hinges on having the right products at the right time. But for clothing retailers with dozens of stores, managing inventory across stores and warehouses can be a constant tightrope walk. **The Challenge: Stockouts & Overbuying** Imagine a popular clothing line facing stockouts during a major sale. Disappointed shoppers and lost sales - a nightmare for any retailer. The low-margin nature of the business makes this even more critical. On the other hand, overbuying leads to storage costs and potential markdowns. **The AI Solution: Predicting Demand & Optimizing Inventory** Here's where AI steps in as a game-changer. By leveraging a treasure trove of data: * Point-of-sale transactions * Warehouse inventory * Supplier delivery schedules * Historical sales data (including seasonality, weather, marketing impact) AI can build powerful forecasting models. These models can: * **Predict demand surges:** Identify upcoming holidays or marketing campaigns that might drive sales for specific items. * **Alert for potential stockouts:** Proactively warn about items selling faster than they can be restocked in certain locations. * **Optimize inventory allocation:** Ensure stores have the right amount of stock to meet anticipated demand. **Beyond Numbers: AI-powered Insights** While traditional reports offer data, AI takes it a step further. Generative AI report writers can create customized summaries tailored for each store manager. These reports translate complex data into clear, actionable insights, such as: * How to maximize sales of well-stocked items. * Strategies to mitigate potential shortages before they disrupt customer experience. **The Result: Happier Customers, Higher Sales** By using AI for inventory management, clothing retailers can: * Reduce stockouts and improve customer satisfaction. * Minimize overstocking and optimize storage costs. * Make data-driven decisions to maximize sales during peak periods. This is just one example of how AI is transforming retail. By leveraging the power of AI, clothing lines can create a smoother shopping experience for their customers, ultimately leading to higher sales and a more competitive edge. #AI #Retail #InventoryManagement #SupplyChain #CustomerExperience

European grocery retailers feel the burn as margin pressure reaches a 20-year high. With consumers trading down and switching to discount formats, retailers are bracing for intense negotiations over terms in 2024. But the game is changing. Assortment adjustments are no longer a small-scale solution – radical moves like delisting selected brands are gaining momentum. To thrive in this landscape, retailers must embrace advanced demand and assortment analytics, leveraging customer data for smarter predictions. These arguments get even more powerful once supported by advanced should-cost models, combining comprehensive cost factor breakdowns with real-time commodity cost evolution. In addition, the buzz around Generative AI is real. Initial trials suggest AI can be a game-changer in summarizing data, aggregating research, and drafting supplier letters. Supplier Negotiations 3.0 is here. With a fresh approach and cutting-edge tools, retailers aim to flip the script and regain control. Read more here > https://owy.mn/3qLrRKY #RetailRevolution #SupplierNegotiations #PrivateLabel

Will be a hot autumn as retailers and manufacturers have launched into the annual negotiation period across many markets - digesting 12 months of inflation, anticipating labor cost rises, and wondering about the demand outlook. This point of view shares our experience and suggestions for retailers - as it is especially them who are entering the period with high ambitions. We see great promise in bringing the whole business model and new insights to play while making it digestible for the buying teams. Hope you enjoy the read! #owretail #retail #negotiation

Yes, retailers need to step up their AI game! The 2023 survey with Retail Dive & Blue Yonder shows that many retailers are falling behind in AI adoption. 📊🛍️ Don't miss out on optimizing inventory and demand forecasting. Download the report to see where your company stands. #AIinRetail #RetailSurvey2023

Yes, retailers need to step up their AI game! The 2023 survey with Retail Dive & Blue Yonder shows that many retailers are falling behind in AI adoption. 📊🛍️ Don't miss out on optimizing inventory and demand forecasting. Download the report to see where your company stands. #AIinRetail #RetailSurvey2023

Yes, retailers need to step up their AI game! The 2023 survey with Retail Dive & Blue Yonder shows that many retailers are falling behind in AI adoption. 📊🛍️ Don't miss out on optimizing inventory and demand forecasting. Download the report to see where your company stands. #AIinRetail #RetailSurvey2023

Yes, retailers need to step up their AI game! The 2023 survey with Retail Dive & Blue Yonder shows that many retailers are falling behind in AI adoption. 📊🛍️ Don't miss out on optimizing inventory and demand forecasting. Download the report to see where your company stands. #AIinRetail #RetailSurvey2023