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Study

Customer Experience in Grocery Retail: the Fresh Opportunity

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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

To wow and retain customers, OTTO offers everything on one platform: a comprehensive selection of products at competitive prices with excellent service. The success factors here include the highest level of goods availability and short delivery periods. To optimize its category management, meet increasing customer expectations and set prices in alignment with its business strategy, OTTO uses the solutions Replenishment Optimization and Price Optimization.

The Solution

Blue Yonder develops its predictive applications with OTTO on an ongoing basis to be more practically oriented. 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
  • Increase in sales
  • Profit maximization
  • Forecast quality improved by 40%
  • Surplus stock reduced by 20%
  • Reduced return rates
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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

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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