These algorithms can play a very critical role in setting the right and profitable Assortment for the Retailers. In SAP HANA, release of PAL includes classic and universal predictive analysis algorithms in the eight data mining categories:įew of the Key algorithms available in PAL are – Outlier algorithm / K- Means algorithm /Apriori algorithm / Multiple Liner and Polynomial Regression / ABC Analysis. SAP HANA – PAL ( Predictive Analysis Library) provides a fantastic solution for Retailers to tackle these complex stock assortment scenarios and ensure the Channel / Location predicts the right assortment, right quantity at right place including the virtual locations. They need to gear up with sophisticated tools like SAP HANA – Predictive Analysis. The introduction of the Omni channel in the Retail environment is creating a new need for Retailers. This becomes a critical issue and to plan Stock availability at right place becomes a huge challenge – agile quick decisions are required as Stock pools have to pushed and pulled based on dynamic demands of the consumer behavior.
In current scenario one Channel is moving unpredictably – suddenly faster/slower than other. In one of my recent Assortment solution assignments with a Global Fashion Retailer, I can see this dynamic shift – the process of local assortment and allocation has to change, as the Omni Channel demands are creating the imbalance in stocking strategy. The efficiency of service would be the key to success for Retailers. This situation is expected to continue as the shopping destination for products are no more definite or limited to stores. As these Omni Channels are new in existence and there is not much historical data to support supply chain decisions – Predicting Virtual consumer behavior has become a bottleneck for the Retailers. However, the issue is of stock availability at right place. The cause has been highlighted as shipping issues.
We have experienced this during the past years Thanksgiving and Christmas where the retailers were unable to meet with the customer service expectations. However, the key change and impact – which is evidently due to the incremental Omni Channel – is on Demand Planning accuracy and Right Assortment planning.
All along these changes have been pushing and introducing different directions and business process requirements, which are currently not met by traditional ERP/POS and Planning Solutions for Retailers. Brick and mortar commerce is merging with e-commerce, m-commerce and ultimately with budding Omni Channel scenario which include multiple online sales platforms, New Cross Sell and Up Sell Models, Online Auction Engines and Social Media. Retail Industry is going through dynamic changes – one, primarily due to shifts in economy and other due to shifts in technology.
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