Markdown Optimization

Automate your markdown pricing and timing decisions with Solvoyo’s advanced analytics and AI/ML technology. Solvoyo Markdown Optimization solution offers automated diagnostics, predictive analytics, and prescriptive actions to maximize margin and sell-through while achieving end-of-life inventory goals for short life-cycle and fashion products.

Maximize margin while clearing excess inventory

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.

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What can you achieve with Solvoyo Markdown Optimization Solution?

Highly and quickly scalable and adaptable for business growth, supporting new categories, new channels, and new countries
Cloud-native single planning platform
Cluster and channel-based price recommendations

Have easy access and visibility to the financials tied to the approved and recommended actions
Have the ability to view and edit input parameters such as eligible price lists per product group/channel, store inclusions/exclusions, in-store clusters
Manage markdown eligibility status by product hierarchy/season code/style level

Scalable and adaptable for business growth, supporting new categories, new channels, and new countries
Cloud-native single planning platform
Cluster and channel-based price recommendations

Improve Gross Margin

Reduce End of Life Stock

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Markdown Optimization

Opportunity to Maximize Margins in the Fluid World of Fashion Retail What is Markdown Optimization? Markdown optimization is the application of optimizing of reduction in

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Quickly focus on items requiring price actions

Interactively evaluate different price points through what-if analysis 

Learn from similar products to predict response to price changes using with AI/ML technology

Take recommended price actions to meet different business objectives such as maximizing sell-through or lifetime gross margin

Quickly focus on items requiring price actions

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Learn from similar products to predict response to price changes using with AI/ML technology

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Take recommended price actions to meet different business objectives such as maximizing sell-through or lifetime gross margin

3 of 4

Interactively evaluate different price points through what-if analysis 

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User-friendly UI covering all aspects of Markdown Management

Prescriptive models recommending price actions

Managing price action for short lifecycle products with target exit dates
Prescriptive models recommending price actions to meet different business objectives such as maximizing sell-through or lifetime gross margin

Configurable reports and visibility

Configurable reports to fit into your markdown management process
Easy access for executive review
Visibility to the financials tied to the approved and recommended actions

Ability to view various parameters

Eligible price lists per product group/channel
Store inclusions/exclusions in-store clusters
Markdown eligibility status by product hierarchy/season code/style

Configurable reports and visibility

Configurable reports to fit into your markdown management process
Easy access for executive review
Visibility to the financials tied to the approved and recommended actions