Increff named as a Representative Vendor in the 2021 Gartner Market Guide for Retail Assortment Management Applications (RAMA): Short Life Cycle Products
Covid 19 exposed inefficiencies in processes and systems, highlighting the need for preparedness and resilience through digitization. In the report, Gartner predicted that “by 2024, Tier 1 retailers in North America and Europe will reduce inventory carrying costs by 30%, dramatically improving free cash flow for digital investment, while revamping balance sheets. Much of this reduction will be effected in seasonal, short life and apparel categories where manual processes and gut feel are no longer enough”. The report further states, “Customer’s expectations of a unified retail commerce experience continue to challenge multichannel retailers to pursue digital business transformation”.
Accurate merchandising requires complex orchestration across all processes such as assortment planning, in-season analysis, space management, allocation, pricing, replenishment, and supply chain. Modern cloud-based solutions, like Iris X, incorporate advanced algorithms to create location-specific assortment to drive transformation through better customer understanding and alignment to limit excess inventory. Shortened product life cycles are due to fast-changing customer preferences e.g. in fashion, or rapid technology innovation e.g. consumer electronics. For such products, production and procurement decisions need to be made fairly in advance, or JIT (Just-In-Time) so production can start as soon as an order is received so no finished goods are stocked.
Task automation enhances speed and shifting from excel to purpose-built applications augments human activity. Retail Assortment Management Applications (RAMA) for omnichannel brands are foundational for modernizing merchandising processes and form an integral part of the core merchandising application suite. Using big data, both historical and near real-time, with advanced analytics and algorithms helps create store-specific assortments aligned to specific customer behaviour segments.
Increff Iris X considers the uniqueness of each store up to ‘segment of 1’ for managing merchandising processes accurately.
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Gartner, “Market Guide for Retail Assortment Management Applications (RAMA): Short Life Cycle Products”, Robert Hetu, May 28, 2021.
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3 September, 2021