A big thank you to Fashion Mannuscript for featuring insights from our CEO, Max Ma, on how the retail industry can tackle markdowns through smarter allocation and planning.
In an era where consumer expectations are rapidly evolving, and supply chain disruptions are frequent, it's crucial for retailers to adapt with agility and precision. Max's latest article explores some key strategies for optimizing profitability:
Breaking Down Silos: Real-time Sales & Operations Planning (S&OP) allows teams across sales and supply chain to collaborate effectively. Utilizing AI to bridge these traditional divides can drive more accurate and holistic decisions—ensuring every SKU gets the attention it needs.
Data-Driven Decisions: By analyzing sales data and market trends in real time, AI-driven systems can accurately forecast demand and adjust inventory accordingly. This means placing the right products in the right locations, significantly minimizing overstock and markdowns while boosting full-price sales.
Real Results: One of our clients, a large conglomerate, managed to place production orders earlier, leading to a $1 reduction in production costs per garment—an impressive achievement in the retail sector! Beyond cost savings, clients have seen increased visibility across continents, helping them stay ahead of localized demand.
Tailored Allocation: Effective inventory planning considers product type, fashion trends, seasonality, and regional preferences. This nuanced approach ensures retailers meet market needs while optimizing resource use—minimizing markdowns and improving profitability.
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