ORACLE INVENTORY OPTIMIZATION ENABLES RETAILERS TO NAVIGATE UNCHARTED DEMAND

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Make Inventory Work

Cloud service taps machine

learning to help retailers

optimize inventory to adapt

to changing customer

buying behaviors

The global health crisis has

created an inventory emergency

for many retailers. Today’s

unpredictable and volatile

customer buying habits are

limiting the effectiveness of

using historical data to predict

purchasing behavior and plan

product inventory accordingly.

Powered by machine learning,

the new Oracle Retail Inventory

Optimization Cloud Service can

sit between a retailer’s

forecasting and supply chain

systems to help highlight the

next best actions they can take to

optimize inventory. This helps

retailers get to answers on

inventory placement and volume

faster so they can better serve

customers while maintaining a

healthy cash position. In today’s

climate, the ability to respond to

changing customer demands as

quickly as possible is critical.

Oracle Retail Inventory

Optimization Cloud Service

comes with pre-built machine

learning models that more

accurately predict overall

inventory levels; recommend

inventory re-distribution; balance

supply and demand to free up

money tied up in excess

inventory; and more.

The cloud service easily

integrates with existing

forecasting and supply chain

solutions and can be deployed

quickly to reduce the burden on a

retailer’s IT and development

teams.

“Retailers are struggling to adjust decades of well-defined inventory and traditional supply chain management processes that have been thrown a curveball by COVID-19.”

Jeff Warren Vice President of Strategy and Solution Management Oracle Retail

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Make Inventory Work

Consumer habits in recent months have been anything but typical as

shortages spurred the need for people to try new brands or stores,

and the desire to go out less has led to fewer shopping trips, but often

larger overall grocery purchases. As a result, inventory moves out of

the stores faster, creating a strain on both the supply chain and its

financial model, leading to a gross margin problem.

For example, an average grocery retailer, with 30,000 SKUs and at

least 1,000 stores, will have millions of SKU-store combinations.

Determining the optimal replenishment plan when things are

changing so rapidly is almost impossible without the help of purpose-

built, machine learning models.

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Make Inventory Work

With Oracle Retail Inventory Optimization Cloud Service retailers can

simulate and forecast optimal inventory positions and parameters to

eliminate trial-and-error. As a result, supply chain executives and chief

financial officers can come together to navigate tricky terrain, manage

cash flow, and determine the impact of inventory on the balance

sheet.

The autonomous solution self-learns and automatically tunes to

optimize working capital and deliver fast value by:

▪ Performing continuous optimization of replenishment parameters;

▪ Informing replenishment strategies with service-to-inventory trade- offs;

▪ Translating objectives into machine learning-driven replenishment policies down to the item-location;

▪ Recommending inventory re-distribution to serve customers and avoid markdowns;

▪ Enriching the inventory movement processes with time-phased inventory projections;

▪ Helping increase employee productivity to maximize a constrained workforce;

▪ Interacting with Oracle Retail Offer Optimization to drive better outcomes through simultaneous manipulation of supply and demand; and

▪ Infuses Oracle Retail Merchandising capabilities with Machine Learning and Artificial intelligence to achieve better inventory results.

“With the ability to be deployed in just weeks, Oracle Retail Inventory Optimization Cloud Service does the heavy lifting and modeling to rebalance and optimize inventory so retailers can invest in the right products and automatically adapt to new consumer patterns as they occur.”

Jeff Warren Vice President of Strategy and Solution Management Oracle Retail

Watch the On-Demand Webcast to learn why the market needs Inventory Optimization.

Cost | Revenue | Speed

https://go.oracle.com/LP=98149?xd_co_f=2846baf3-e1ed-41a8-9ccb-731458e73f81&elqCampaignId=253584