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Fashion's New Rules for Pricing

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OTTO Impresses Customers and Increases Sales at the Same Time

“Through the machine learning algorithm, our forecasts are constantly improving. This way, we get precise results that help us plan and control a future-oriented product range.”

Michael Sinn, Director of Category Support,
OTTO

Replenishment Optimization & Price Optimization

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The Challenge

Positive customer experience and satisfied customers are at the heart of OTTO. To wow and retain customers, OTTO offers everything on one platform: a comprehensive selection of products at competitive prices with excellent service. OTTO's success is built on attractive offers, the highest availability of goods and quick delivery times. All these elements are entwined, which presents a challenge. Only those who can strike the right balance will survive and be successful against the fierce competition. 

The Solution

Blue Yonder develops its machine learning solutions in partnership with OTTO on a continuous basis to ensure maximum effectiveness. The solutions adapt quickly and flexibly to circumstances in the increasingly changing market and make it possible for OTTO to achieve superior results with its business. 

The Results
  • Increased sales through more demand
  • Maximized profit through intelligent pricing strategies
  • Higher quality predictions
  • Less end-of-season waste
  • Shorter delivery times
  • Lower shipping costs through optimized logistics
  • Lower return rate
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Replenishment Optimization

Reduce out-of-stock rates by up to 80% without increasing waste or inventory

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  • 10x

    increased product availability

  • 80%

    out-of-stock rate reductions

  • 50x

    fewer manual interventions

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Price Optimization

Optimize pricing decisions for every product, while improving revenue and margins by more than 5%

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  • 15%

    improved revenues

  • 5%

    improved profits

  • 20%

    stock levels reduction

Businesses Using Replenishment Optimization

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Kaufland Optimizes Its Replenishment Process

Read the success story

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Successful Demand Forecasting at dm

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Natsu Optimizes Its Sales Planning and Reduces Leftover Stock by 20%

Read the success story