Solutions / Vendor Solutions / Optimization Services / Size Optimization

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With 7thOnline Size Optimization, you can be confident that you are executing a size distribution strategy that maximizes sell-thru, minimizes early size breaks, and enhances the customer experience by best matching inventory with local demand.

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

7thOnline Size Optimization

Every vendor loses a significant portion of full price sell-thru of their line due to a mismatch between store size distribution and local demand. The amount of data and quantitative analysis involved in determining the optimal size allocation by style by store is prohibitive. The calculations of the size distribution are often oversimplified, not taking into account the price, revenue, and margin impact of missed opportunities, stockouts and overstocks in particular sizes. Without correcting for past mistakes, history is repeated rather than improved upon. These shortcomings in sizing result in lower profits and disappointed customers.

Vendors and retailers can avoid these unnecessary sales and margin losses with 7thOnline's powerful size analytics and optimization capabilities. Through historical POS analysis and proprietary optimization algorithms, 7thOnline Size Optimization determines the optimal size distribution by store that will maximize gross margin. For case pack styles, the algorithm determines the optimal size mix for each pack size and the optimal distribution of available case packs to each store.

KEY CAPABILITIES
Account for missed sales potential from sizes that were out of stock early as well as margin losses from overstocked sizes that were sold at discounted prices Optimize size profiles and distribution by store for open stock Optimize pack size configurations and distribution of packs to stores Automatically apply size profile to purchase order

KEY BENEFITS
Clients can mirror the size profile of local demand at the style attribute and door level Reduced size breaks (up to 15 percentage points) and increased full price sell-thru (up to 14 percentage points) deliver higher revenue and gross margin contribution

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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