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Embrace Analytics to Dramatically Improve Retail Performance
1.
Embrace Analytics DramaticallyImprove Retail
Performance with special guest:
2.
Welcome! Todd Harris Director of
Marketing @ Celect Vivek Farias CTO, Co-founder @ Celect Paul Schottmiller Partner, Retail and Consumer Goods @ KSA © 2016 Celect, Inc. All Rights Reserved.
3.
An Intro to
Celect • Who we are ‒ Predictive analytics (SaaS) platform focused on the retail sector ‒ Based in Boston, MA ‒ Venture-backed, award winningtechnology out of MIT • Awards & Recognitions ‒ MIT Computer Science and Artificial Intelligence (CSAIL) Top 50 Greatest Innovations © 2016 Celect, Inc. All Rights Reserved.
4.
Kurt Salmon’s Analytics
Services help clients infuse analytics to transform business processes with actionable insights that solve hard problems and unlock new opportunities across the consumer goods value chain. Unparalleled insights delivered to retail and consumer companies with a heritage of thought leadership Expertise across the value chain, from growth strategy to execution Global consumer and retail industry practice with consultants across three continents Over 80 years of delivering performance enhancing strategies Specialized. Integrated. Proven. Global. An Intro to Kurt Salmon © 2016 Celect, Inc. All Rights Reserved.
5.
Emerging tech + analytics •
Volume, Velocity, Variety • Connectivity - Moore + Metcalf + Cloud • AI • Machine Learning The opportunity … • Precision • Personalization • Prediction • Automation Challenge is the same • Right product • Right place • Right time • Right price A Transformed Competitive Landscape Gartner predicts that by 2020, more than 75 percent of organizations will deploy advanced analytics as part of a platform or analytics application to improve business decision-making. Companies are accelerating the shift in focus of their investments from measurement to analysis, forecasting and optimization. © 2016 Celect, Inc. All Rights Reserved.
6.
Operational and Financial
Performance Forecasting Consumer Insights Merchandising, Planning, and Buying Product Design & Development Sourcing Distribution & Logistics Channel Operations Marketing/Promotion Physical Flow Data Driven Decision Making – 5 Key Areas Create/Buy More Winners Sample Less Shorten Leadtimes Sell More Markdown Less Increase Loyalty Next Generation Performance Reduce Costs Automate Decisions Increase Operating Margin Allocation, Replenishment, Flow Precision, Prediction, Personalization, Automation © 2016 Celect, Inc. All Rights Reserved.
7.
Tough Problems, New
Opportunities › Store replenishment › Speed of delivery vs. shipping cost › Fulfillment leveraging all channels › Localization › Winners vs. losers › Optimal store assortment Marketing & Consumer Insights Product Development & Merchandising Sourcing & Supply Chain Channels › Customer’s lifetime value › Customer’s profitability › Optimize marketing / media spend › Potential out of stocks › Traffic by channel and location › Personalized interactions © 2016 Celect, Inc. All Rights Reserved.
8.
Effectiveness Revenue: 7-12% increase Gross
Margin : 6-8% increase Time to Market: 30-40% decrease Efficiency SG&A: 5-15% decrease How Big is the Opportunity? Operating Margin: 25-40% increase Precision, Prediction, Personalization Automation © 2016 Celect, Inc. All Rights Reserved.
9.
Innovating Requires a
Business Value Focus • Business value driven vs. technology driven • Test and learn approach ‒ Speed wins ‒ Failure IS an option ‒ Tinkering is good ‒ This is not ERP • Data quality is critical • Cross organizational sponsorship is required Shiny Objects © 2016 Celect, Inc. All Rights Reserved.
10.
Predictive Analytics Using Context
& Choice to Understand True Demand © 2016 Celect, Inc. All Rights Reserved.
11.
The Power of
Context … © 2016 Celect, Inc. All Rights Reserved.
12.
Reveals Answers © 2016
Celect, Inc. All Rights Reserved.
13.
Context is Everywhere ©
2016 Celect, Inc. All Rights Reserved. Context highlights answers … … and context is everywhere in your data.
14.
© 2016 Celect,
Inc. All Rights Reserved. A Choice Model tells you what a customer would prefer to buy when given the choice. Today, you only know what a customer bought Understand True Demand • We sold out of a particular product in Store 28 à What was the right allocation? • We have never sold a particular product in Store 58 à How well would it sell there? • We are lookingto add a new brand in to a set of stores à What impact will that have on store sales?
15.
What to place
in Store 113 vs Store 127? © 2016 Celect, Inc. All Rights Reserved.
16.
Example: Traditional Store
Clustering © 2016 Celect, Inc. All Rights Reserved. Cluster 4 Cluster 1 Cluster 2 Cluster 3 Cluster 5 What Is The Operational Value of This?
17.
Clustering and Assortments
via Choice Modeling • Build representative customer choice models for every store • Cluster stores based on choice ‒ Limited number of localized assortments = Easier Ops ‒ Easy to interpret from an operational perspective • Optimize assortments to a cluster © 2016 Celect, Inc. All Rights Reserved. Celect gives you insight into true demand.
18.
Assortment Recommendations © 2016
Celect, Inc. All Rights Reserved.
19.
Celect Optimization Platform ©
2016 Celect, Inc. All Rights Reserved.
20.
Thank you! Visit www.celect.com
for more! Subscribe to our blog blog.celect.com Twitter: @celect @KSRetail © 2016 Celect, Inc. All Rights Reserved.
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