Results:
- Increased Forecast Accuracy & Reliability
- AI-Driven Insights to Improve New Product Introductions/Lifecycles
- Data-Driven Decisions to Support Transformation
- Growth Across Existing and Emerging Channels (ecommerce + brick and mortar)
Company Overview
A premium retail business; the client experienced rapid growth across online channels as well as physical store locations, entering multiple new countries in Europe in the last year. The company offers its own private label brand, as well as products from renowned 3rd party premium brands to more than 1.2 million active customers.
Challenges
The retailer identified a need to modernize its capabilities in order to achieve its growth objectives. Although the existing forecasting process was solid, the organization struggled to maintain forecast accuracy as its product catalog grew and expanded across geographic markets. At the same time, the growth in physical locations (a significant change from its predominantly online history), introduced new data streams and added complexity. The client recognized the need to move beyond reactive problem-solving to a proactive, data-driven approach to supply chain planning. They needed to use the wealth of data generated across all channels to optimize inventory, reduce waste, and ensure a seamless customer experience.
| Scaling the business rapidly – Expansion to 10 new countries and opening several new brick and mortar stores and mortar stores | A scalable planning platform supports the accelerated growth timeline through data-driven insights and improved collaboration |
| Ensuring high quality data for forecasting – cleanse the input going into the algorithm quality data for forecasting | Strengthens the forecast by improving the quality of the data and signals, leading to better inventory alignment, customer satisfaction and increased margins |
| Strategic transformation alignment – link operations, technology and growth targets | Initiatives require clear planning and cross functional alignment to avoid silos or missed milestones functional alignment to avoid silos or missed milestones |
| Avoiding the distraction of AI hype – focused AI to drive value and results for the business | Ensure the team stays focused on achieving goals based on clear objectives rooted in practical applications of AI to solve specific challenges |
Solution
To achieve its growth objectives, the client embarked on a modernization effort across its online front-end, supply chain and ERP. The Atlas Planning Platform was selected to provide more advanced supply chain planning capabilities including machine learning, causal modeling, product clustering, and more.
Atlas provides a single, centralized supply chain planning platform for data analysis, enabling the client to gain a holistic view of demand across all channels, understand drivers and impact, and support faster and more confident decision-making.
A key opportunity was leveraging Atlas to improve new product forecasting and understanding the impact of one product on another (such as identifying halo products or potential cannibalization). By analyzing historical data from similar products, market trends, and customer preferences, Atlas delivers actionable insights for the retailer to optimize inventory, minimize risk, and maximize sales potential.
Atlas also facilitates improved collaboration between teams, e.g. planning, merchandising, marketing, and supply chain. By providing a shared view of the supply chain, Atlas helps teams align their efforts and make more informed decisions.
Results
By leveraging the Atlas Planning Platform, this retailer is driving significant improvements across its supply chain:
- Established Data Trust. A system is only valuable if it is utilized. By developing trust in the outputs and increased adoption, the team turns to Atlas to help drive the plan forward.
- Expanded Data Sources. Now, with Atlas in place, the retailer is able to take advantage of the breadth of data sources available to help uncover new insights and enhance its forecasting and inventory capabilities.
- Improved Forecast Accuracy. Critical for navigating changing lead times and sourcing constraints.
- Scalable Business Growth. Driven by effective data transformations and strong executive sponsorship, Atlas helps the retailer drive profitable growth as it enters new markets and optimize its existing footprint.