Empower Your Business With The Magic Of Machine Learning!
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Empower Your Business With The Magic Of Machine Learning!
Reduce your excess inventory and increase profitability!
Mobiplus destocking engine takes into account eshops and retailers stock, see which products have significant stock, retrains the mobiplus shopping recommendation engine on the fly, predicts which customer would like to buy its products and recommends it. This way helps eshops to reduce stock significantly and increases profitability.
The key characteristics of the Mobiplus destocking engine are:
1. Inventory Assessment:
– The destocking engine assesses the current inventory levels of e-shops and retailers, including both online and physical store locations.
– It identifies products that have accumulated significant stock, possibly due to slow sales or over-purchasing.
2. Real-Time Monitoring:
– The engine continuously monitors stock levels, ensuring that it remains up-to-date with changing inventory situations.
– This real-time monitoring allows for swift reactions to stock imbalances as they occur.
3. Dynamic Retraining:
– The destocking engine dynamically re-trains the Mobiplus shopping recommendation engine on the fly based on the identified excess stock.
– This retraining process ensures that the recommendation engine adapts to new stock levels and customer behaviors, maintaining relevance.
4. Predictive Customer Profiling:
– It leverages eshops and retailers purchased data transaction and predictive analytics to profile customers based on their past behaviors and preferences.
– By understanding customer buying patterns, it predicts which customers are likely to be interested in purchasing products with significant stock.
5. Targeted Recommendations:
– The engine generates targeted recommendations by matching the identified excess stock with the predicted customer profiles.
– These recommendations are presented to customers in real-time as they browse the e-shop or retail store.
6. Inventory Reduction:
– Through personalized recommendations, the destocking engine helps e-shops and retailers sell products that would otherwise remain stagnant in inventory.
– This leads to a reduction in excess stock and minimizes the risk of overstocking, ultimately improving inventory turnover rates.
7. Improved Profitability:
– By efficiently managing inventory levels and increasing sales of products with significant stock, the destocking engine contributes to enhanced profitability.
– Retailers can increase revenue without incurring additional costs related to excess inventory management.
Mobiplus destocking engine plays a critical role in optimizing inventory management by identifying excess stock, predicting customer interest, and providing targeted recommendations.
It operates in real-time, adapts to changing circumstances, and ultimately contributes to increased profitability for e-shops and retailers while delivering personalized shopping experiences for customers.
E-shops and retailers face several challenges related to excess and remaining inventory in today’s competitive business landscape:
1. Overstocking:
– **Problem:** Overstocking occurs when businesses purchase or produce more inventory than they can sell within a reasonable timeframe.
– **Challenges:** Overstocking ties up valuable capital, occupies storage space, and increases the risk of products becoming obsolete or outdated.
2. Reduced Profit Margins:
– **Problem:** Excess inventory often leads to profit margin erosion as businesses resort to discounting to clear out stagnant products.
– **Challenges:** Lower profit margins can impact a retailer’s overall financial health and sustainability.
3. Storage Costs:
– **Problem:** Storing excess inventory incurs additional costs, including rent for warehousing, utilities, and insurance.
– **Challenges:** These expenses eat into profits and hinder resource allocation for other business needs.
4. Cash Flow Constraints:
– **Problem:** Excess inventory ties up capital that could be invested elsewhere in the business.
– **Challenges:** Cash flow constraints can limit a retailer’s ability to invest in growth initiatives, new products, or marketing campaigns.
5. Reduced Productivity:
– **Problem:** Managing excess inventory, including tracking, organizing, and maintaining it, can be time-consuming and labor-intensive.
– **Challenges:** This reduces the productivity of employees who could be focused on more strategic tasks.
6. Opportunity Cost:
– **Problem:** Keeping capital tied up in excess inventory means businesses miss out on opportunities to invest in growth, innovation, or improvements.
– **Challenges:** The opportunity cost of holding excess inventory can be substantial in terms of missed revenue potential.
7. Inventory Obsolescence:
– **Problem:** Aging or obsolete inventory may never sell, leading to a complete loss of value.
– **Challenges:** This can result in significant financial losses for the business.
8. Customer Satisfaction:
– **Problem:** Customers may encounter out-of-stock situations for in-demand products if inventory space is occupied by stagnant items.
– **Challenges:** This can lead to a decline in customer satisfaction and potential loss of loyal
Customers.
9. Competitive Disadvantage:
– **Problem:** E-shops and retailers with inefficient inventory management may struggle to compete with more agile and cost-effective competitors.
– **Challenges:** Competing on price or offering a wide product range can be difficult when resources are tied up in excess inventory.
10. Data and Insight Gaps:
– **Problem:** Many businesses lack data and insights into their inventory performance and customer preferences.
– **Challenges:** The absence of actionable information hampers strategic decision-making and optimization efforts.
Excess inventory is a significant challenge for businesses, and various statistics highlight the extent of this problem:
1. **Financial Impact:**
– In the United States, excess inventory costs businesses an estimated $1.1 trillion annually, according to the Institute for Supply Management (ISM). These costs include storage expenses, discounting, and potential obsolescence.
2. **Small Business Impact:**
– The National Small Business Association (NSBA) reported that for small businesses in the United States, managing excess inventory is one of the top five challenges they face, with 39% of small business owners expressing concerns about inventory management.
3. **E-commerce and Fashion Industry:**
– In the e-commerce and fashion sectors, unsold inventory is a pervasive issue. In 2020, McKinsey & Company reported that the fashion industry had an estimated 21% overstock rate, causing financial strain and environmental concerns.
4. **Consumer Electronics:**
– The consumer electronics industry also faces challenges related to excess inventory. In 2021, Statista reported that the consumer electronics sector accounted for approximately 15% of global overstock inventory.
5. **Food Waste:**
– Food retailers and restaurants struggle with excess perishable inventory. The United Nations estimates that one-third of all food produced globally (worth around $1 trillion) is wasted annually, a significant portion of which is due to overstock and unsold items.
6. **Global Inventory Levels:**
– According to the National Retail Federation (NRF), the global retail inventory shrinkage rate, which includes excess inventory, reached 1.58% of sales in 2020, amounting to approximately $61.7 billion in losses for U.S. retailers alone.
7. **Economic and Environmental Implications:**
– The excess inventory problem has both economic and environmental implications. The Ellen MacArthur Foundation reported that excess inventory contributes to overproduction and waste, generating an estimated 92.8 billion metric tons of greenhouse gas emissions annually.
8. **COVID-19 Impact:**
– The COVID-19 pandemic exacerbated inventory challenges. During the pandemic, businesses experienced supply chain disruptions and unpredictable demand shifts, leading to an increase in excess inventory levels across various industries.
9. **Retail Return Rates:**
– High return rates in the e-commerce sector contribute to excess inventory. In 2020, Statista reported a return rate of 30% for online purchases, further complicating inventory management for retailers.
These statistics underscore the significant financial, operational, and environmental impact of excess inventory on businesses and the global economy.
Efficient inventory management and destocking solutions have become essential strategies for mitigating these challenges.
1. **Efficient Inventory Management:**
– E-shops and retailers can reduce overstocking by efficiently identifying and selling products with significant stock levels, leading to better control over inventory management.
2. **Increased Profitability:**
– By selling stagnant inventory, businesses can improve their profitability without incurring additional storage or clearance sale costs.
3. **Enhanced Cash Flow:**
– Swiftly converting excess stock into revenue can free up capital for investing in new products or other strategic initiatives.
4. **Reduced Holding Costs:**
– Lowering the amount of unsold inventory decreases the expenses associated with storing excess stock.
5. **Personalized Customer Experiences:**
– The destocking engine offers customers tailored product recommendations, enhancing their shopping experience and increasing the likelihood of purchases.
6. **Improved Customer Loyalty:**
– Satisfied customers who find relevant products through recommendations are more likely to return, fostering long-term loyalty.
7. **Data-Driven Decision-Making:**
– The engine provides valuable insights into customer behavior and stock performance, enabling businesses to make informed decisions regarding inventory, pricing, and marketing strategies.
8. **Competitive Advantage:**
– E-shops and retailers that efficiently manage their inventory and offer personalized shopping experiences gain a competitive edge in the market.
9. **Real-Time Adaptation:**
– The engine’s ability to retrain and adapt to changing circumstances ensures that recommendations remain relevant and effective over time.
10. **Streamlined Operations:**
– Businesses can streamline their operations by automating the recommendation process and focusing resources on other critical aspects of the business.
Read our book and learn why instore personalization and shopping data is the name of the game.
Mobiplus destocking engine provides e-shops and retailers with an array of benefits, from improved inventory management and profitability to enhanced customer experiences and a competitive advantage in the market.
It empowers businesses to optimize their operations and achieve better financial outcomes while meeting the evolving needs of their customers.
mobiplus destocking engine for e-shops and retailers!
Reduce your excess inventory and increase profitability!
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Test out the Recommendation Engine for up to 20.000 euros in revenue from recommendations. No credit card required. Just enter your company information and we’ll contact you with all the details.
