In the report, Gartner analyst Robert Hetu states that, "Retailers are actively researching and implementing merchandise optimization applications. Cross-channel shopping behavior, combined with multichannel order management and in-store fulfillment capabilities, is causing an acceleration of interest in this technology."
The report continues to reinforce the importance of data-driven decisions and optimization, "Traditional planning applications are good at managing and automating basic tasks. Algorithmic optimization takes this a step further by improving and automating the decision making required to support seven merchandising processes — assortment, space, allocation and replenishment, price, promotion, markdown, and size and pack — to adjust assortments by store, cluster or channel; determine buy quantities; optimize space allocation and planograms; and maximize product allocation and availability. Ultimately, these technologies will help stores achieve higher sales and margins in their local markets. They facilitate the complex management that customer-centricity requires, enabling the retailer to do more-detailed planning with fewer resources. This technology is required to support customer-centric merchandising."
"Celect delivers an unprecedented forward-looking view of retail demand, with high-scale, interactive optimization. We have helped our customers optimize inventories and greatly simplify the complexity of merchandising decisions," said John Andrews, CEO of Celect. "Without the ability to understand future demand, retailers often understock higher need items or are forced to use markdowns to move stagnant inventory from over buying – in the end, sacrificing margin and profit."
The Celect Inventory Optimization Suite enables retailers to leverage advanced analytics and machine learning to simplify the complexity of inventory and product assortments, while providing prescriptive decision support with data already on hand to become more effective during the merchandise planning process. With Celect, retailers benefit from true demand prediction, improving the performance of product assortments, merchandise buys, store allocations, and ship-from-store order fulfillment decisions.
1 Hype Cycle for Retail Technologies, 2017, Published: 17 July 2017 ID: G00314154, Analyst(s): Robert Hetu
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Celect is a cloud-based, predictive analytics SaaS platform that helps retailers optimize their overall inventory portfolios in stores and across the supply chain, resulting in double-digit percentage revenue increases through optimized assortments and fulfillment. This groundbreaking advance in machine learning and optimization allows retailers to understand how an individual customer shopping in store or online chooses from an assortment of products, revealing true demand. The technology builds on a fundamental advance in customer choice modeling called by MIT's Computer Science and Artificial Intelligence Laboratory one of the 50 greatest innovations it has ever produced.
The Bar Code News (www.barcode.com), now in its 8th year, does not sell software, hardware, bar code products or services. Use the links on the left side menu to find the products or services you need. Want to reach us? See the links on the Footer menu below. Please let vendors know you’ve seen them here.
Check out the latest Bar Code Digital magazine here
Other Barcode News:
- 10-4 Systems and Riskpulse Deliver Risk Intelligence to the Digital Supply Chain
- Tackling the 5 W’s of Enterprise Label Management
- EMNS, Inc. Signs a Fortune 250 Chemical Producer
- Identiv to Showcase Latest Portfolio of Feature-Rich Physical Security Solutions at ASIS
- Genius Central Launches GCHQ at Expo East 2017
- IoT Security Expert To Demo Multi-Device Smart Home Hack Live At Mobile World Congress
- On-Shelf Availability Solution Market Global Industry Analysis (2012-2016) and Opportunity
Get The Bar Code News once a month, once a week or once a day. Subscribe here.