Yet again, Blue Yonder has been recognized by independent experts and is now listed on the Constellation ShortList for Price Optimization Solutions for Q1 2018. Constellation Research’s ShortLists provide technology end users and buyers with an invaluable resource of offerings related to their market, to enable their pursuit of digital transformation. The Constellation ShortLists are created through an exhaustive research process that includes client inquiries, partner conversations, customer references, vendor selection projects, market share and internal research. This thorough and independent research process ensures that Constellation ShortLists are one of the best resources available to technology buyers for advice on purchasing market-leading solutions for their business.
Market-leading AI in automating key business processes
The inclusion of Blue Yonder Price Optimization on the Constellation ShortList for Price Optimization solutions is yet another testimonial to the effectiveness of Blue Yonder’s market-leading artificial intelligence in automating key business processes, to help retailers achieve their objectives. Blue Yonder Price Optimization solution rapidly senses vital demand signals from changing market conditions and data such as sales, promotions, weather and events. It then sets optimized prices for every channel and every product according to these data points. It learns the relationship between price changes and demand while incorporating a retailer's business strategy along the product's life cycle, and provides a measurable impact on revenues and return on investment.
Improved margins and revenue growth by price optimization
When Magazine zum Globus, a Switzerland-based chain of high end department stores, deployed Blue Yonder Price Optimization, it aimed to reduce the high levels of leftover stock that had to be carried into the next season, which in turn lead to challenges including additional handling, transport and balance sheet devaluation. Price reductions were not efficient enough to move the product quickly and profitably. The existing process wasn’t able to take into account each article in each location. With Blue Yonder Price Optimization automating the pricing and merchandising of MzG’s stock across 120,000 color-product combinations, the retailer was able to improve margins in sales of new products, grow revenue by 10% over the previous year and grow sales by 15% over the previous year.
Andreas Hink, Chief Digital Officer at Magazine zum Globus, said: “With the Blue Yonder solution, we were able to optimize markdown processes and predictably increase our sales and margins. The higher frequency of the price reductions allows us to be much more aligned with our customers’ demands. The automated pricing decisions also relieve our purchasing team of the task.”
The inclusion of Blue Yonder Price Optimization in the Constellation ShortList is yet more evidence of the potential for artificial intelligence to revolutionize the retail industry, through superior decision-making, data analysis and automation.