Listing:

Delisting:

Optimal space allocation:

decide which product to exclude from the portfolio.

suggest new products to include in the portfolio.

define which products and how much of it to put on shelves.

Assortment Process Pillars

Assortment optimization is based on the matching principle: find the “best” product for the “best” client. However, the tricky part is defining what “best” means and the course of action if there is no product-client fit.

There are three main pillars of the iterative assortment process: delisting, listing, and optimal space allocation.



Assortment Process Challenges


Which of the following challenges do you face?

Customers prefer delivery over in-store visits

Customers are afraid of “slow” shopping

Influence of COVID-19

Companies should have anticipated that the impact of quarantine, mobility limitation, and the resulting economic crisis would be reflected in customer preferences and financial statements. We see the following main trends:

Customers are paying more attention to the

price/value tradeoff

Customers are willing to try new products

SEE OUR DEMO

VALUE CHAIN

From our expertise, here is a process that offers solutions to the challenges created by these new trends.

1

Define and calculate a set of KPIs per product

2

Rank products to define top performers and products that should be checked for delisting potential

3

Divide products by the optimal number of clusters based on product similarity

4

Define categories per cluster that are the more beneficial for this cluster (margin, traffic, basket value, etc.)

5

Make decisions per cluster about delisting, listing, and optimal space allocation for each product

6

Measure the impact of the decisions made

** Decision-making and impact measurement steps are not shown in the demo due to the specificity of client requirements.

OPTIMIZATION

VALUE

Saves 1-3% of procurement costs


Increases revenue

on 2-4%

Increases margin up to 1%

It works for our clients.

Will it work for you?

ML + UI = IMPROVED SOLUTION

ADOPTION

Our demo simulates the assortment optimization process. With its help, you can process your data and consider its potential adoption for your company. The demo generates exciting numbers, but we also know you want a user-friendly presentation of results.







POST-COVID ASSORTMENT STRATEGY

Companies are using different strategies in the post-covid world to return to profitability. Which strategy best defines your approach?

Decrease supply chain and stocking complexity

Increase the value dollars spent

Satisfy the changed preferences of post-pandemic customers


Low-risk shopping activities that facilitate customer assurance