daVinci Retail Announces Latest Release of Demand Clustering Application for Its Retail Merchandising Software Suite
“Effective clustering unleashes the true potential of assortment planning by bringing the right mix of products for customers across retail locations and channels, it gives retailers significant financial benefits in terms of sales, margin, and inventory productivity.” — Ning Chiu, President and CEO
daVinci Retail has been an industry leader in Assortment Planning since 2005. We have been laser-focused on providing merchandising teams with a collaborative platform to create and plan different assortments tailored to their groups of customers. daVinci’s Clustering is the mechanism used to develop those targeted groups of customers. The output groups can then be used by daVinci assortment planning to tailor the merchandise assortment to each of these individual customer groups.
For decades, retailers have used Channel and Sales-Volume-based clustering methodologies, particularly for allocation.
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“The possibilities are endless with our clustering tool. The financial reward of getting targeted assortments right is significant.”— Melanie Tomaselli, VP of Customer Success
daVinci Assortment Planning takes the clustering process upfront, enabling retailers to buy right in the first place and giving the allocation team their initial allocation roadmap. While daVinci Assortment Planning allows retailers to plan their assortments with clusters they are already familiar with and work with daily, daVinci Clustering takes buy quantification to the next level. Retailers who wish to keep their current Clusters can use daVinci’s Clustering engine to calculate each cluster’s demand more accurately.
For retailers who want to sharpen their customer focus and leverage additional daVinci capabilities, they have the opportunity to re-examine their Clusters in multifaceted ways incorporating various factors to determine what Clusters make sense for their business. The daVinci Clustering App can incorporate multiple factors such as sales volume, seasonality, capacity, climate, demographic, or any other attribute data available and relevant to your business. “The possibilities are endless with our clustering tool. Of course, the more sophisticated the approach to Clustering, the more complexity it brings. But the financial reward of getting targeted assortments right is significant. After all, every markdown dollar saved goes directly to our customer’s bottom line.” -Melanie Tomaselli, VP of Customer Success.
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