What is assortment planning? It's an opportunity for retail companies to provide a unique variety of products, which consumers actually want to buy. Assortment intelligence to plan product offering profitably by using big data to know what's hot.
Assortment intelligence matters because out-of-stocks frustrate shoppers and excess inventory creates wastes, lost sales and inefficiencies, often due to insufficient market data or ineffective supply chain communication.
What's worse, different suppliers use different methods to classify their products. Non-standardized product data means everybody's speaking different languages, making it hard to "compare apples to apples" across hundreds of thousands of products. Consider the following stats:
Each retailer has unique product codes (UPC)
In Asia, in lingerie alone we track 3,800 versions of the color 'beige'
Lack of SKU classification across sizes / colors / design elements
"15,000+ new brands launched in last 12 months across categories
Thousands of existing brands entered new categories of play."
By contrast, effective assortment planning helps companies optimize their offering to sell the variety, quality and designs shoppers want. Competitive, standardized assortment data also helps you identify and correct gaps in your catalog to increase your conversion rate.
Optimize your assortment with data to sell the right products to the right audience at the right time. Track your competitors' brands, inventory movements and historic trends so your entire supply chain knows which products to sell. Accurately forecast demands by SKU and calculate the optimum quantity of inventory to meet demand, and correct gaps in your catalog for new retail merchandizing opportunities.