Blue Yonder Case Studies Orsay’s ROI is always in style

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	Orsay’s ROI is always in style Blue Yonder

Orsay’s ROI is always in style

Blue Yonder

Technology Category	Analytics & Modeling - Predictive Analytics
Applicable Industries	Apparel Retail
Applicable Functions	Sales & Marketing
Use Cases	Demand Planning & Forecasting Predictive Replenishment
Services	Data Science Services
Challenge	ORSAY, a vertically organized fast-fashion retailer, manages the complete supply chain, from design to production and selling. The company offers an up-to-date product range — a large selection of trendy styles and classical looks that customers are looking for right now. Because fashion trends are always changing, ORSAY is challenged to manage the pricing of its products across their life cycle — maximizing profits, but also ensuring that clothing will sell before it becomes outdated. ORSAY’s goals were to increase revenues and margins via fewer markdowns, reduce inventory costs by clearing stock more efficiently, improve staff productivity, and enhance shoppers’ satisfaction by meeting their merchandise and pricing expectations. Read More
About Customer	ORSAY is a vertically organized fast-fashion retailer that manages the complete supply chain, from design to production and selling. The company offers an up-to-date product range — a large selection of trendy styles and classical looks that customers are looking for right now. ORSAY operates in an omni-channel world and has over 700 stores in 34 countries. The company's goals were to increase revenues and margins via fewer markdowns, reduce inventory costs by clearing stock more efficiently, improve staff productivity, and enhance shoppers’ satisfaction by meeting their merchandise and pricing expectations. Read More
Solution	Backed by artificial intelligence (AI) and machine learning (ML), Blue Yonder Luminate Clearance Pricing enables ORSAY to maximize profits, reduce waste and achieve data-driven, continuously optimized pricing at every stage of the product life cycle. By considering current and historical data, Blue Yonder Luminate Clearance Pricing is able to determine the right level of price elasticity for each of ORSAY’s apparel items. The solution also accounts for such complex factors as competitive prices, substitution and cannibalization effects as it automatically makes the most profitable pricing decisions for ORSAY. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Predictive Analytics

Applicable Industries

Apparel

Retail

Applicable Functions

Sales & Marketing

Use Cases

Demand Planning & Forecasting

Predictive Replenishment

Services

Data Science Services

Challenge

ORSAY, a vertically organized fast-fashion retailer, manages the complete supply chain, from design to production and selling. The company offers an up-to-date product range — a large selection of trendy styles and classical looks that customers are looking for right now. Because fashion trends are always changing, ORSAY is challenged to manage the pricing of its products across their life cycle — maximizing profits, but also ensuring that clothing will sell before it becomes outdated. ORSAY’s goals were to increase revenues and margins via fewer markdowns, reduce inventory costs by clearing stock more efficiently, improve staff productivity, and enhance shoppers’ satisfaction by meeting their merchandise and pricing expectations.

About Customer

ORSAY is a vertically organized fast-fashion retailer that manages the complete supply chain, from design to production and selling. The company offers an up-to-date product range — a large selection of trendy styles and classical looks that customers are looking for right now. ORSAY operates in an omni-channel world and has over 700 stores in 34 countries. The company's goals were to increase revenues and margins via fewer markdowns, reduce inventory costs by clearing stock more efficiently, improve staff productivity, and enhance shoppers’ satisfaction by meeting their merchandise and pricing expectations.

Solution

Backed by artificial intelligence (AI) and machine learning (ML), Blue Yonder Luminate Clearance Pricing enables ORSAY to maximize profits, reduce waste and achieve data-driven, continuously optimized pricing at every stage of the product life cycle. By considering current and historical data, Blue Yonder Luminate Clearance Pricing is able to determine the right level of price elasticity for each of ORSAY’s apparel items. The solution also accounts for such complex factors as competitive prices, substitution and cannibalization effects as it automatically makes the most profitable pricing decisions for ORSAY.

Impact #1	ORSAY no longer needs to rely on manual analysis or guesswork for pricing decisions.
Impact #2	The company is able to sell its products when there is a demand for them, applying less frequent discounts.
Impact #3	In the past, ORSAY might have applied three or four markdowns per item, each of these markdowns eroded their profit margins. Today they apply only two or three markdowns per item.

Impact #1

ORSAY no longer needs to rely on manual analysis or guesswork for pricing decisions.

Impact #2

The company is able to sell its products when there is a demand for them, applying less frequent discounts.

Impact #3

In the past, ORSAY might have applied three or four markdowns per item, each of these markdowns eroded their profit margins. Today they apply only two or three markdowns per item.

Benefit #1	10% improvement on ORSAY stock per discount percentage.
Benefit #2	Reduced the number of markdowns per item from three or four to two or three.

Benefit #1

10% improvement on ORSAY stock per discount percentage.

Benefit #2

Reduced the number of markdowns per item from three or four to two or three.

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Overview

Orsay’s ROI is always in style

Operational Impact

Quantitative Benefit