Solutions / Retail Solutions / Optimization Services / Assortment Optimization

Outsourced Services

All retailers and manufacturers should take advantage of optimization services given the minimal resource requirements and the immediate and substantial benefits.

Dr. Saman Hong
VP Analytics & Optimization Solutions
7thOnline, Inc.

7thOnline Assortment Optimization

In order to determine optimal store assortments, retailers must consider financial and strategic objectives, historical sell-thru and missed opportunities, local demographics, and many other factors. Though much of this data is available to them, the volume and complexity prevents them from effectively leveraging it. Instead, merchants are forced to rely on intuition and their own number crunching, resulting in unnecessary missed sales opportunities and excessive markdowns.

With 7thOnline Assortment Optimization, retailers can be confident that they are investing in a merchandise mix for each store that maximizes profit potential. Based on historical performance, customer data, and strategic objectives, 7thOnline Assortment Optimization generates the optimal category, class, and SKU breadth and depth to meet local demand while incorporating the necessary constraints. The optimization can be performed at various levels depending upon the retailer's requirements.

KEY CAPABILITIES
Estimates sales potential at different price discount levels Identifies the top selling styles and recommends the quantity needed to maximize margin contribution Identifies and accounts for lost sales on styles with under-purchased units Identifies and accounts for an under-purchased breadth of styles Considers the potential price erosion as more units are added to styles Determines the optimal balance of adding units to the top selling styles or adding additional styles Customizable to meet specific retailer requirements

KEY CAPABILITIES

Estimates sales potential at different price discount levels
Identifies the top selling styles and recommends the quantity needed to maximize margin contribution
Identifies and accounts for lost sales on styles with under-purchased units
Identifies and accounts for an under-purchased breadth of styles
Considers the potential price erosion as more units are added to styles
Determines the optimal balance of adding units to the top selling styles or adding additional styles
Customizable to meet specific retailer requirements

KEY BENEFITS
Increased SKU productivity (identify and reduce under-performing products and invest more in top sellers) Increased full-price sell-thru and reduced markdowns and stock-outs Improved customer satisfaction and loyalty through localization of assortments Reduced administrative costs and errors Proprietary algorithms built specifically for apparel, footwear and accessories User-friendly interface facilitates rapid user adoption

KEY BENEFITS

Increased SKU productivity (identify and reduce under-performing products and invest more in top sellers)
Increased full-price sell-thru and reduced markdowns and stock-outs
Improved customer satisfaction and loyalty through localization of assortments
Reduced administrative costs and errors
Proprietary algorithms built specifically for apparel, footwear and accessories
User-friendly interface facilitates rapid user adoption

Contact Us
Corporate Headquarters: 24 W 40th Street, 11th Floor New York NY 10018 Tel: 800.775.7571 212.997.1717 Fax: 212.997.1133 sales@7thonline.com support@7thonline.com info@7thonline.com
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