Taking the Guessing Out of Inventory Management
Regulate your merchandise accordingly with our machine learning algorithm.
Inventory management directly impacts nearly every aspect of online retail. Profitability of any retailer is directly impacted by having the right quantity of the right products available at the right time. Finding the right balance between inventory stockout and overstock is crucial. Merchants and buyers rely on their experience and historical data to forecast sales based on seasonality and their customer’s consumption habits. Too much stock means sales targets are missed and margins are negatively impacted. And stock outs mean missed margin growth opportunities and disappointed customers.
Blue Moon Digital’s Data Science team helps companies better understand consumer demand, how it correlates to product velocity and stock control, and prepares you to merchandise accordingly. This helps you reach an ideal balance between inventory turnover and supply.
How We Do It Better
Machine learning algorithms detect patterns and correlations in data that traditional methods of data science often miss. By leveraging a self-adapting model, our algorithm adjusts based on changes in patterns and/or correlations with other data points to forecast potential inventory depletion rates. Forecasting overstock categories as well as stock out categories gives merchants better data to make decisions on mark downs, promotions, and re-orders.
Connecting the Dots (or rather, data)
Determining the impact from both internal (promotions) and external (trends or weather) is often challenging when forecasting product demand. By connecting inventory and sales data to other data sources (both internal and external) that impact product performance, our machine learning algorithm mathematically determines the impact of these factors and adjusts the prediction.
The Impact We Make
We help you take the guess work out of planning your product level performance. Through data we can help you make more informed pricing, merchandising, and marketing promotion strategies.