Background

This regional omni-channel retailer with an annual revenue of more than $400M was founded on the belief that customers are their most valuable asset. But manual processes and spreadsheets between merchandising and marketing teams were making it difficult to quickly understand how to optimize their pricing and inventory to remain competitive while continuing to serve the needs of their valuable customers.

The Challenge

The retailer faced challenges in maintaining competitive pricing, efficiently managing inventory across all channels, and accurately predicting future market trends and demand, all while minimizing resource expenditure on manual processes or additional platforms.

The Solution

To tackle these challenges, the retailer implemented a comprehensive AI-driven approach by connecting their Shopify POS and eCommerce site to ProfitGPT’s four advanced AI technologies: Competitor AI, Pricing AI, Forecasting AI, and Inventory AI. These solutions provided a holistic strategy for multi-channel retail management through a seamless plug-and-play API integration.

  • Competitor AI continuously monitored and analyzed competitor pricing strategies across similar, private label, and competing products, ensuring the retailer's offerings remained competitively priced.
  • Pricing AI offered dynamic pricing recommendations to optimize profit margins and revenue based on real-time market data, demand signals, and inventory levels.
  • Forecasting AI utilized historical sales data, market trends, and external factors to predict future demand, aiding in strategic decision-making for promotions and inventory management.
  • Inventory AI revolutionized inventory management by providing insights into optimal stock levels, reorder points, and distribution across channels, reducing the risk of overstocking or stockouts and ensuring inventory efficiency.
  • ProfitGPT allowed the seamless, intuitive view of the Competitive, Pricing, Forecasting, and Inventory insights to be viewed, understood, and actioned upon quickly.

Outcome:

  • Multi-Channel Sales Growth: Gained a 17% increase in sales across all channels within the first month, thanks to optimized pricing and inventory management.
  • ROI Achievement: Achieved a positive ROI within the first month due to significant reductions in manual labor, improved sales, and reduced inventory holding costs.
  • Time Savings: Saved the retailer over 67 hours per month by automating competitor tracking, pricing adjustments, demand forecasting, and inventory management.
  • Inventory Optimization: Inventory AI led to a 36% reduction in overstock and a 23% decrease in stockouts, enhancing inventory turnover and reducing waste.
  • Customer Satisfaction: Improved customer satisfaction by 21% through competitive pricing, better product availability, and reduced delivery times.
  • Strategic Agility: Enabled the retailer to quickly adapt to market changes and consumer trends, maintaining a competitive edge through informed pricing, inventory, and marketing strategies.
  • Personalized Views: ProfitGPT also allowed the different business segments to effectively understand the business from their own persona: Merchandisers could see information based upon category and distributer, while the VP of Sales could quickly understand which products should be discounted based upon excess supply.
  • Tech Debt Consolidation: Being able to leverage the ProfitGPT platform meant business owners and stakeholders could easily gain insight into current profit insights and market trends without having to stitch together information from separate platforms. This meant a significant decrease in technology spend and a corresponding increase in efficiency of decision making.