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Our Markdown solution takes account of all relevant trading factors and store-specific characteristics to provide the optimal product markdown value to minimise disposals
About
Finding the optimal markdown approach can improve cost and time effectiveness. It can also maximise sales volume, reduce stock write-off and, ultimately, waste. Our solution leverage ML modelling to identify optimal markdown based on agreed targets on waste, sales, labour hours…etc. The algorithm should consider variables that drive a higher or lower markdown (for e.g. Type of store, type and quantity of product stockholding, time of day, days to expiry, quantity, product price elasticity, etc). The system produces +200 million potential markdown values from the unique combination of variables. We are currently live with major food retailers across the UK, USA and Asia-Pacific, delivering significant improvements to Gross Profit, since 2016.
Key Benefits
- Our Dynamic Markdown solution has been proven to reduce Waste, typically between 6% - 10%, across year 1. - We integrate with existing processes, reducing the need for any additional labour. Our solution has also been proven to reduce the number of markdown touch points by 30%. - Store compliance to markdown c.90%. - We can have the solution live within 8 weeks.
Applications
Our solution is directly applicable to food retailers, whom already have an existing markdown process. Our goal is to optimise the markdown reduction.