Optimize Planning & Allocation with Predictive Weather-Driven Demand (WDD) Analytics

Optimizing plans and inventories is always a chief objective for retailers, but planning those levels, especially on localized basis, is tricky. Planalytics’ Weather-Driven Demand (WDD) analytics help companies more effectively manage this challenge. By reducing planning error and better aligning inventories with shifts in demand, businesses can better avoid lost sales, margin-eroding markdowns, and costs. Retailers can typically capture 20 to 70 basis points in incremental profit by incorporating WDDs into planning and allocation processes.

Planalytics’ granular, bottom-up approach is effective because it corrects for weather volatility at a product and local (store or market) level. Removing the weather bias from plan baselines in order to calculate year-over-year plan adjustments keeps retailers from inadvertently “chasing” weather-based sales impacts that are very unlikely to repeat. 

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Winning With The Weather

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A footwear chain adjusted its plan for more casual (closed-toed) products and fewer sandals due to an unfavorable WDD outlook for the spring season

A DIY retailer integrated WDDs into its demand planning solution at the subclass/store level to adjust volumes for expected weather impacts
Reduced markdowns & improved profitability Captured a 10% accuracy improvement

 

 

What Our Clients Are Saying

In a very difficult sales environment, we were able to maintain margins and that was a huge win.
We use Planalytics to formulate the shape of the season… where we will see opportunities for sales, stock, and markdowns.

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