|
Markdowns are an inevitable part of the retail cycle. Fashion retailers need to sell their summer styles before the cold weather sets in. Department stores need to get rid of the last of the garden furniture to make way for Christmas decorations. Consumer electronics retailers need to mark down older model scanners, digital cameras, or DVD players, making way for new ones. In every case, the objectives are to clear out a specific amount of inventory within a specified time period as profitably as possible, to replenish open-to-buy accounts, and hit month-end or quarterly targets.
The i2 Solution: i2 Markdown Price Optimizer
i2 Markdown Price Optimizer helps retailers to achieve these objectives. It determines the timing, duration, and depth of price discounts by considering inputs such as seasonality, demand forecasts, costs, prices, and other business constraints.
Key capabilities of i2 Markdown Price Optimizer can include:
- Supporting automated and manual markdown initiation processes
- Considering real business constraints and rules for accurate markdown planning
- Developing store-specific or store-group–specific markdown schedules for each item
- Supporting “what-if” capabilities to evaluate different markdown scenarios
- Bringing consistency to the markdown process
- Alerting the user to any exceptional circumstances requiring attention
- Conducting post-event analysis to help with the creation of better future plans
- Providing visibility into the financial and inventory implications of decisions
Benefits of i2 Markdown Price Optimizer can include:
- Maximized net margins
- Reduced leftover inventory
- Consistent markdown processes
- Quicker markdown decisions
|
