Luminate™ Retail Bolsters Sales and Margins for Ernsting’s family
Customer Company Size
Large Corporate
Region
- Europe
Country
- Austria
- Germany
Product
- Luminate™ Retail
Tech Stack
- Artificial Intelligence
- Machine Learning
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Productivity Improvements
- Revenue Growth
Technology Category
- Analytics & Modeling - Machine Learning
- Analytics & Modeling - Big Data Analytics
Applicable Industries
- Retail
Applicable Functions
- Sales & Marketing
Use Cases
- Predictive Replenishment
- Retail Store Automation
Services
- Data Science Services
About The Customer
Ernsting’s family is one of the largest cross-channel retailers based in Germany. The company has more than 1,800 stores across Germany and Austria. They deal with a wide range of products and are known for their quick collection cycles, with new stock arrivals every two days. The company was facing challenges in maintaining consistent sales levels across their varying product ranges due to the rise of online stores and digitization. They needed a strategic solution to optimize pricing and promotions to quickly sell new collections within specified timeframes while increasing margins.
The Challenge
Ernsting’s family, one of the largest cross-channel retailers, was facing challenges in maintaining consistent sales levels across their varying product ranges. The German-based company was also dealing with the tremendous upheaval in the marketplace due to the rise of online stores and digitization. Classic seasonal cycles gave way to faster trends and short-lived monthly collections, forcing new stock arrivals every two days. With more than 1,800 stores across Germany and Austria, the company needed a more strategic way to optimize pricing and promotions to quickly sell new collections within specified timeframes while increasing margins.
The Solution
To explore the possibilities of artificial intelligence (AI) and machine learning (ML) solutions, Ernsting’s family partnered with Blue Yonder for a 5-month pilot program. They used Luminate Retail, a powerful digital fulfillment platform for next-generation supply chains, in 50 brick and mortar stores to test its capabilities. With AI and ML, extensive amounts of data was compiled and analyzed at the individual store and article level, as well as inventory and order data to deliver automated pricing decisions. During the test phase, price reductions were made more frequently and earlier in the product life cycle, but in smaller increments. The solution was later rolled out across its entire product range in all stores across Germany and Austria as well as its online shop in May 2018.
Operational Impact
Quantitative Benefit
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