The DataBrooke Way is a closed loop of dynamic merchandising insights and intervention systems. Always open, always focused on profitability and transparent decision making.
Clustering of stores based on prior performance using significant and relevant independent variables gives us the power to model demand forecasting for items and categories untested at the store based on behavior at the store category level, rather than merely copying the past performance of the store. This dynamic intervention also helps in reducing opportunity loss for the business.
Most methodologies use prices to group products as mass; mass-premium and premium or sell-through ratios of the prior season to group the products as slow-moving, medium and fast-moving. These methods suffer from the fact that they do not factor overall availability (coverage width & depth availability) through the season. We use a proprietary sophisticated measure (Velocity of Sales) that is dynamically measured and used for various purposes like product categorization; defining appropriate width and depth at size and color or any other granularity of product attribute.
Ideal Assortment Plans
One of the key decisions to be made is deciding on the ideal width and depth of assortment at a sku level for each store. Mistakes in this crucial decision usually end up as opportunity loss or excessive mark-down costs. Past behavior of products at the store is distorted based on availability, and mistakes in the past assortment tend to be carried into the new season without correction. Our unique process of creating ideal assortment plan for each store based on superior store and product categorization with sophisticated measures like Velocity of Sales mitigates the loss arising out of under or over stocking.
Demand Forecasting and Seasonal Buy Plan
The forecasted velocity of the new seasonal skus at each store helps in forecasting the demand at store and aggregate level. Rationalizing the demand forecast taking into consideration aspects like Minimum Order Quantity, Cost elasticity based on order quantity, etc. will finally influence the Seasonal Buy Plan.
Automated Replenishment System
The initial placement quantity for each store is arrived at based on the ideal assortment plan and agreed stock cover norms. The automated periodic replenishments are based on the dynamic VoS based depth required.
Stock Transfer Recommendations
Periodic exercise to correct mis-match between demand and supply due to potential deviations in demand forecasting.
Optimizing the cost of mark-downs based on the need and extent of over-stocking at specific skus in specific territtories or channels.
Dashboard that provides relevant reports that are easy to understand and lead to RIGHT actions.
DataBrooke Analytics is a division of C-BIA, a leading analytics and business intelligence practice based in Pune, India. C-BIA has presence in the UK, Mumbai and serves Fortune 500 companies, not-for-profit entities as well as leading consulting entities. Our Parent: C-BIA India and our Associate C-BIA Consulting UK
Flat No. 13, 4th Floor, Sandeep Apartment,
Near Dinanath Mangeshkar Hospital, Erandawane
Pune MH 411004 IN
+91 775 700 9668