Assortment Optimization

Assortment optimization plays a crucial role in increasing profitability, particularly for retailers, due to limited shelf space, high inventory costs, and product variety.

Assortment Optimization

Assortment optimization plays a crucial role in increasing profitability, particularly for retailers, due to limited shelf space, high inventory costs, and product variety.
At KoçDigital, we create models to ensure the most efficient product assortment that maximizes profitability at each location by analyzing customer behaviors and historical sales data analytically. When creating these models, we consider not only industry-specific factors but also factors such as customer preferences, the location of customer stores, and the behaviors of customers in that specific location.
Assortment optimization is crucial in an environment where costs are increasing, and customer habits are rapidly changing due to technology.

Benefits of AI-Enhanced Assortment Optimization

• Efficient utilization of shelf space by placing the most optimal products on the shelves.
• Preventing sales losses and thereby increasing customer loyalty.
• Optimizing inventory costs and turnover to maximize profits.
• Analyzing complex product and store structures through modeling to quickly adapt to changing purchasing and market conditions.

However, the crucial point is to establish the product variety and its associated benefits in a proper structure and ensure its continuity.

KoçDigital Approach

The prerequisite for achieving success and continuity in assortment optimization is the approach itself. The most important criterion when approaching the problem is understanding the business and its processes.

The business process is the fundamental building block for creating business rules. Through these rules, the output obtained from modeling not only improves the numbers but also makes the business itself more efficient, which is among the significant success criteria in our projects.

Improving the way of doing business is a more complex process than improving metrics. This complexity can be resolved by providing flexibility in perspective. Therefore, we work closely with business units to determine specific business rules and include various levels of specific situations, such as location and product group, in the modeling process.

Provide Precisive Advantages with KoçDigital

We provide the following advantages to our customers through the models we create:

• Obtaining optimal product variety based on customer behaviors at each store location and for each product group through optimization.
• Uncovering the potential sales of products that have not been previously sold in the relevant location using forecasting methods.
• Ensuring model automation and continuity through end-to-end services (model setup + model integration + model maintenance and improvement)

Featured Client Use Case and Business Outcomes

Market Assortment Optimization for Energy Retailer

• We optimize SKU segmentation for each market store. Assortment plan (product mix) is defined per market via advanced ML algorithms.
• Sales forecast for SKU and stock data/planogram is actively used in optimization phase.
• Robust optimized solution created in Python, and most profitable products and products which need to be evaluated for cancellation are selected per station. Those results and other detailed marketing dashboards are visualized.

For the next phase of the project, automatic replenishment will be added.

Business Outcomes
Elimination of Non-value-added SKUs and sales loss.
Significant revenue growth

How can we help you??

Meet with KoçDigital's solutions that create value for corporations!

You will give consent for all requests, complaints and suggestions you send to our company and their finalization, you can access the message via the content customer Clarification Text for commercial electronic sending to you for processing your personal data. We ask you to make sure that the specific content to be submitted to us or to be listed at the time of submission is not personalized: race, ethnicity, political opinion, philosophical belief, dress and dress, association, foundation or trade union membership, health, sexual examination data, criminal conviction and data on security measures, biometric and genetic data.