Powered by 7thonline Lab’s™ ML & AI, Test Buy™ analyzes inventory demand with only two data points, eliminating the need for retailers to commit to large initial buys.
7thonline, Inc., the leading integrated demand planning and inventory management SaaS provider to the retail, wholesale and supply chain industries, today announces its continuous dedication to innovation and R&D with its latest application, Test Buy™. The cutting-edge cloud-native solution captures the latest consumer trends and recommends inventory to specific retail locations with only two data points needed.
A multi-billion dollar client recently realized a 35% increase in gross margins after utilizing our Test Buy™ solution.
Since 2006, 7thonline has been utilizing techniques such as machine learning and artificial intelligence to extract meaningful information and to predict future consumer spending patterns and behaviors to improve the retail forecasting, planning and management process. The Test Buy™ module further enhances those processes to optimize inventory management at the style, color, size and door level. The Test Buy™ module’s ability to forecast and recommend based on two data points (days / weeks) allows the retail decision making teams to allocate inventory to the locations with the highest probability to sell the product at full price.
Industry analysts estimate that, on average, 60% of traditional initial buys are unproductive, resulting in missed sales targets, shrinking margins, and forced markdowns. Test Buy™ mitigates a retailer’s risk by delivering quick response and visibility to productive and unproductive inventory situations. Retailers are now armed with a solution that frees up working capital and decreases inventory risk on many levels that include but are not limited to overstock, stock outs, and Omni-channel allocation mismanagement.
Test Buy™ provides the necessary data for a retailer to optimize a product’s distribution:
- Evaluate initial test store effectiveness
- Expand store count based on a sophisticated clustering algorithm
- Determine optimal quantity for the initial and expansion store locations
- Calculate each location’s size profiles based on current trend
The Test Buy module is presented in a fully integrated visual dashboard within our OTB module.
“When 7thonline began its journey over 20 years ago, its devotion to data science and technology was a bit contrarian, but today, I am humbled that we are considered innovative and transformative. Test Buy™, with all of its cutting-edge features, was developed with total client collaboration. I am thrilled to say that one of our clients has recently seen a 35% increase in gross margins after utilizing our Test Buy™ solution. The retail and supply chain industries are undergoing a dramatic shift where senior management is placing much more importance on data, data science and software to help them gain a competitive edge. I am delighted to see this and embrace it wholeheartedly.”
– Chris Chung, President, Americas & EMEA 7thonline, Inc.