EuroShop 2017 in Düsseldorf was five days of stimulating discussions and lots of interest in our machine learning solutions.
Blue Yonder was among the 2,369 exhibitors from 60 countries at the world’s largest trade show for retail technology and shop design where we presented our groundbreaking solutions to some of the 113,000 visitors. Every three years, all the exclusive and big names in retail come together at retail’s most important information and communication platform for decision makers. This also held true for 2017 with the show celebrating its 50th anniversary year.
Omnichannel retail is the future
Tailored omnichannel solutions and creating emotional connections in the in-store shopping experience were the most talked topics at the show and in the forums. The industry is continuing to invest in online retail to boost their Brick&Mortar stores. Meanwhile, competition with online shops is driving retail to create more attractive stores while also linking retail shops with online to foster new retail and design concepts.
Brick&Mortar retail is the immense potential of omnichannel business models and data analysis seriously. The consistent use and evaluation of data gives rise to many innovations to improve the customer journey while connecting online and offline worlds create one unrivaled experience.
Omnichannel Forum: Spotlight on Price Optimization
The omnichannel forum was full of stimulating discussions about successful strategies, challenges and the possibilities new technologies can deliver. Stefan Sandulescu, our Solution Consultant, presented his talk, Profitable Merchandising Decisions: Driving Revenue Growth Through Machine Learning, to a packed room. He showed how automated price optimization based on machine learning can help retailers can exceed the increasing demands of customers and simultaneously maximize profits. Blue Yonder Price Optimization enables optimal sales for the entire season through automated prices and markdowns. The result is is a 6% increase in profit, a 15% increase in sales and a 15% overstock reduction.
Tech Trend: The Rise of Artificial Intelligence
In the retail technology exhibition halls, the retail industry showed a clear interest for data analysis and usage. Exhibitors included providers of Artificial Intelligence for merchandise planning and price optimization to software for branch management and online-to-offline shopping carts. This year showed a shift from Big Data to Artificial Intelligence. Many sales forecasting systems are already built on Artificial Intelligence. The combination of algorithms and neural networks are becoming more powerful and the forecasts increasingly accurate. Optimizing prices, assortments and logistics with machine learning is now on the agenda. In short: digitalization has arrived and has become established as one of the most important core processes in retail.
EuroCIS Forum: Machine Learning in Focus
In the EuroCIS Forum, our Senior Solution Consultant Michael Klausmeyer showed how digitization has changed core processes in retail. In his presentation, Changing the economics of retailing with Machine Learning, he presented how 46% of grocery retail’s ordering decisions are made from a gut feeling, while 75% of buyers are dissatisfied with product availability. According to research by Gartner, the lack of precision in forecasting and fluctuations in demand are keeping retailers from reaching their strategic goals. Michael demonstrated how the answer to these problems is Blue Yonder Replenishment Optimization. The machine learning solution considers historical and external data (weather, holidays or competor prices) and creates demand forecasts from the data, delivering automated decisions for every product at every store in any given time period. The automated decisions are always aligned with the retailer’s strategic objectives, enabling optimal merchandise planning. Out-of-stock situations can be reduced by as much as 80% and excess stock and write-offs decreased by 15%.
Get in touch if you have any questions about our presentations at EuroShop 2017 or would like to learn more about our machine learning solutions. We’re always here to talk.