Markdown Optimization

Markdown optimization recommends optimal discount amount and timing to meet the end-of-life inventory targets. Solvoyo Markdown Optimization considers each product’s shelf-life, stock levels, current pricing, lifecycle, and seasonality trends when recommending price actions.

The main goal of markdown optimization is to clear excess and unused inventory. Retailers apply markdown optimization methods to have an optimal inventory in line with consumer demand and product exit/delist plans. Different phases in the product life-cycle, seasonality of demand, competitor pricing, and weather effects need to be considered when taking price actions. There is also the financial side of these decisions; therefore, the trade-off between maximizing margin and maximizing sell-through becomes an optimization problem.

AI / ML and Advanced Analytics

Solvoyo’s Markdown Optimization solution offers automated diagnostics, predictive analytics, and prescriptive actions to support decision-making using AI/ML technology to achieve different business goals.

Through automated diagnostics, users can quickly focus on items requiring price actions. Through predictive models, users can understand the impact of different discount offers on financial and inventory KPIs and make faster and smarter decisions. Through our flexible integration technology with ERP systems, users can automatically execute price changes without the need for any further manual processing. Solvoyo platform also tracks the price actions and measures the markdown performance.