Using up-to-date sales and stock figures, Quantum Retail’s Q system works out how each store should be replenished to ensure the retailer sells as much product at full price as possible.
It makes decisions based on factors such as actual sales, potential missed sales and seasonality. Merchandising staff are still able to override decisions and factor in anomolies.
New Look IT director Adrian Thompson said: “The business case that supported this investment was based on a number of metrics, ranging from stock imbalance, improved service levels and a reduction in markdown.
“It more accurately reflects where our customers would like the product and at what level. It effectively bridges the gap between planning and execution.”
The system links to the retailer’s Oracle merchandising application and was implemented over six months in 2007.
New Look plans to extend the use of the optimisation system to cover initial allocation of products and re-order planning. It will also be used to optimise what is sold via the retailer’s web site.
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