Blue Yonder Case Studies Luminate™ Retail Bolsters Sales and Margins for Ernsting’s family

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	Luminate™ Retail Bolsters Sales and Margins for Ernsting’s family Blue Yonder

Luminate™ Retail Bolsters Sales and Margins for Ernsting’s family

Blue Yonder

Technology Category	Analytics & Modeling - Big Data Analytics Analytics & Modeling - Machine Learning
Applicable Industries	Retail
Applicable Functions	Sales & Marketing
Use Cases	Predictive Replenishment Retail Store Automation
Services	Data Science Services
Challenge	Ernsting’s family, one of the largest cross-channel retailers, was facing challenges in maintaining consistent sales levels across their varying product ranges. The German-based company was also dealing with the tremendous upheaval in the marketplace due to the rise of online stores and digitization. Classic seasonal cycles gave way to faster trends and short-lived monthly collections, forcing new stock arrivals every two days. With more than 1,800 stores across Germany and Austria, the company needed a more strategic way to optimize pricing and promotions to quickly sell new collections within specified timeframes while increasing margins. Read More
About Customer	Ernsting’s family is one of the largest cross-channel retailers based in Germany. The company has more than 1,800 stores across Germany and Austria. They deal with a wide range of products and are known for their quick collection cycles, with new stock arrivals every two days. The company was facing challenges in maintaining consistent sales levels across their varying product ranges due to the rise of online stores and digitization. They needed a strategic solution to optimize pricing and promotions to quickly sell new collections within specified timeframes while increasing margins. Read More
Solution	To explore the possibilities of artificial intelligence (AI) and machine learning (ML) solutions, Ernsting’s family partnered with Blue Yonder for a 5-month pilot program. They used Luminate Retail, a powerful digital fulfillment platform for next-generation supply chains, in 50 brick and mortar stores to test its capabilities. With AI and ML, extensive amounts of data was compiled and analyzed at the individual store and article level, as well as inventory and order data to deliver automated pricing decisions. During the test phase, price reductions were made more frequently and earlier in the product life cycle, but in smaller increments. The solution was later rolled out across its entire product range in all stores across Germany and Austria as well as its online shop in May 2018. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Big Data Analytics

Analytics & Modeling - Machine Learning

Applicable Industries

Retail

Applicable Functions

Sales & Marketing

Use Cases

Predictive Replenishment

Retail Store Automation

Services

Data Science Services

Challenge

Ernsting’s family, one of the largest cross-channel retailers, was facing challenges in maintaining consistent sales levels across their varying product ranges. The German-based company was also dealing with the tremendous upheaval in the marketplace due to the rise of online stores and digitization. Classic seasonal cycles gave way to faster trends and short-lived monthly collections, forcing new stock arrivals every two days. With more than 1,800 stores across Germany and Austria, the company needed a more strategic way to optimize pricing and promotions to quickly sell new collections within specified timeframes while increasing margins.

About Customer

Ernsting’s family is one of the largest cross-channel retailers based in Germany. The company has more than 1,800 stores across Germany and Austria. They deal with a wide range of products and are known for their quick collection cycles, with new stock arrivals every two days. The company was facing challenges in maintaining consistent sales levels across their varying product ranges due to the rise of online stores and digitization. They needed a strategic solution to optimize pricing and promotions to quickly sell new collections within specified timeframes while increasing margins.

Solution

To explore the possibilities of artificial intelligence (AI) and machine learning (ML) solutions, Ernsting’s family partnered with Blue Yonder for a 5-month pilot program. They used Luminate Retail, a powerful digital fulfillment platform for next-generation supply chains, in 50 brick and mortar stores to test its capabilities. With AI and ML, extensive amounts of data was compiled and analyzed at the individual store and article level, as well as inventory and order data to deliver automated pricing decisions. During the test phase, price reductions were made more frequently and earlier in the product life cycle, but in smaller increments. The solution was later rolled out across its entire product range in all stores across Germany and Austria as well as its online shop in May 2018.

Impact #1	In a direct comparison against 50 control stores, stores that implemented the price optimization software saw faster sales and better margins.
Impact #2	Embedding AI/ML learnings into their core supply chain and merchandising processes, Ernsting’s family was able to automate business decisions and transform operations using in-the-moment data.
Impact #3	Being able to respond more quickly to dynamic market conditions and customer preferences resulted in increased revenues.

Impact #1

In a direct comparison against 50 control stores, stores that implemented the price optimization software saw faster sales and better margins.

Impact #2

Embedding AI/ML learnings into their core supply chain and merchandising processes, Ernsting’s family was able to automate business decisions and transform operations using in-the-moment data.

Impact #3

Being able to respond more quickly to dynamic market conditions and customer preferences resulted in increased revenues.

Benefit #1	90% and more of the selected items are sold during allotted timeframe
Benefit #2	Increase in sales volume and gross margins during the 5-month pilot program

Benefit #1

90% and more of the selected items are sold during allotted timeframe

Benefit #2

Increase in sales volume and gross margins during the 5-month pilot program

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Overview

Luminate™ Retail Bolsters Sales and Margins for Ernsting’s family

Operational Impact

Quantitative Benefit