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.
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.
"Using Solvoyo’s Markdown Optimization solution, we now can achieve different business objectives. With an AI/ML predictive life cycle forecasting engine, Solvoyo prevents us from taking unnecessary discounts and thus, minimizing margin lost."
Quickly focus on items requiring price actions
Interactively evaluate different price points through what-if analysis
Quickly focus on items requiring price actions
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
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
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 to fit into your markdown management process
Easy access for executive review
Visibility to the financials tied to the approved and recommended actions
Summary reports for tracking and comparing KPIs for approved and non-approved items at any level of product and location hierarchy
Easy access to approval rates and impacts of price actions
Pivot capability for flexible slicing & dicing of results
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