How Retailers Like Macy's Use Cloud Synthesis To Optimize Consumer Data Intel
In this excerpt from PSFK and Microsoft's Retail Trends Playbook 2020, here's how three brands are implementing cloud synthesis to maximize the benefits of data-based intelligence
In 2016, retailers missed out on $150 billion in revenue due to poor personalization. In a rush to address this loss, industry leaders invested in sophisticated, analytic algorithms without building the infrastructure required to hold and share the collected information most effectively: 52% of companies face challenges connecting the dots between data stored across different parts of their organization.
Retailers are sitting on a wealth of data, but these valuable insights often get lost between disparate teams and siloed channels. Data-driven communication channels can help optimize fast and responsive communication between factories, warehouses, stores and other supply chain elements, sharing key information between partners through cloud infrastructures and keeping everyone on pace to deliver excellence. In this excerpt from PSFK's Retail Trends Playbook 2020, made in partnership with Microsoft, here are three examples of leading brands using cloud-based solutions to maximize the benefits of consumer data intelligence:
The luxury store chain Nordstrom leverages the cloud platform NuOrder to streamline and democratize insights gathered across its wholesale buying systems between the retailer and its suppliers. Shifting away from its previous system that resulted in too much leftover inventory waste, the cloud-based approach allows buyers to compare styles, identify gaps in styles and collaborate between teams.
Macy’s Vendor Direct
Department retailer Macy’s created the Vendor Direct program, which offers an expanded product assortment online by allowing third party vendors to fulfill and ship orders directly to consumers. The program allows Macy’s to offer a much broader product assortment without worrying about warehousing, which allows them to refine their inventory more nimbly and curate their product selection based on shoppers’ purchase history and location. It also drives traffic to Macy’s physical stores through in-store pickup.
The German pharmaceuticals firm Merck KGaA is planning to incorporate AI and predictive analytics throughout its entire supply chain by the end of 2019. Currently, the firm is conducting a pilot program that uses analytics software from Aera Technology Inc. to predict demand spikes, identify bottlenecks and alleviate supply shortages for 100 products. The software collects supply chain data from Merck KGaA’s different planning systems and, after the data is uploaded to Aera’s cloud infrastructure, is analyzed by machine learning algorithms. These algorithms provide recommendations like supply adjustments or demand forecasts.
Cloud synthesis is among many other initiatives being taken to transform data into better customer experiences. For the full report, download PSFK and Microsoft's Retail Trends Playbook 2020 here.
The Retail Trends Playbook 2020 is a report by business intelligence platform PSFK in partnership with Microsoft that presents key trends, best-in-class examples and strategies for executing intelligent retail with the aid of data-driven technologies. Download the full free report here.
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