Despite all the modernization and trends towards customer centricity, the Retail Industry still grapples with fundamental problems like optimization of inventory and markdown planning for various seasons. Very often, a large percentage of the retailers’ profit is eroded through inaccurate, gut-based decision making.
Srinibas Behera, founder of Retigence Software, a Bangalore based startup India is steadfast in his belief that only powerful number crunching technology can tackle the sheer volume associated with the Retail industry. And his company has based their suite of Retail Predictive Analytic solutions on the SAP HANA for this very reason – an in-memory technology that can crunch data at high speeds and return results incredibly fast. The result is not just faster analytics but optimized business processes. For example, inventory supply can now be closely coupled with customer demand on a daily/weekly basis instead of a quarterly basis. Markdown prices do not need to be decided based on historical reference or guesstimates. Of course, there are many software solutions available for the same, but given the volume of data generated in the retail industry from point of transactions, regular technology quickly comes a cropper. “We help Large Global Retailers to enhance their profitability and revenues by avoiding stock outs and reducing excess inventories in thousands of their Stores. We also help retailers reduce margin erosion by recommending optimal Markdowns. And our solutions are powered by in-memory technology” says Srinibas.
Retigence already has some impressive figures from their customers to share. “For a Food & Grocery Chain, our Predictive Analytics Engine has helped reduce their stock-outs by 10%, increased sales by 15% and at the same time reduce excess inventory by 12.5%. For a Pharmacy Retail Chain, it has similarly helped reduce their monthly purchase by 10% while maintaining their Sales level. This is possible because of an optimal combination of Retigence’s proprietary algorithms and the in-memory technology of the SAP HANA platform. It has brought down processing time for large Global retailers from Days to Hours & minutes – something unimaginable in the past.”
Just last month, Retigence released their Markdown Optimization Module which is especially suited for Fashion Retailers and helps optimizing Gross margins during Clearance Sales. It predicts weekly Sales at Store/SKU level and decides optimum markdown for different price group for a set of products. Retailers can use what-if scenarios to compute markdown decision based on current season data, which for many retailers can be very large sized data.
Retigence is a part of the SAP Startup Focus Program and will showcase their Retail Predictive Analytic apps at the SAP Startup Focus Booth at Sapphire Orlando, early next June. They will also be delivering a session at Sapphire 2014 titled “Enhancing Staffing and Inventory Insight in Retail”, with session id SU15207.