Assortments for a Volatile Future

Supply and demand are heavily disrupted by the Corona virus. One must assume that in the aftermath we are going to enter a phase with higher volatility and uncertainty to run business:

  • Customer demand is heavily disrupted. How is my sales forecast affected?
  • Suppliers from China or Italy may not deliver, other regions are locked, but how long?
  • What are my categories with the highest margin and the most solvent customers?
  • Shall I reduce the assortment to reflect uncertain customer demand and maintain liquidity?
  • How does this effect P&L and Cash Flow to avoid any distress or liquidity squeeze?

Core is to understand the assortment's contribution to economic success both in terms of profitability and liquidity.

Analytical Assortment Optimization

Still firms try to maneuver an ever-growing number of SKUs, heterogeneous demand characteristics, and supply chain complexity with spreadsheets to get the assortment right. In fact, data mining and advanced analytics enable comprehensive analyses of customer buying patterns and its direct consequences on the associated supply chain:

  • Current assortments are analyzed by its profitability, liquidity and planning uncertainty with both pre-defined and custom-specific KPIs.
  • Large and heterogeneous assortments can be analyzed and tested real-time with ‘What if’ scenarios affecting P&L, balance sheet and cash flow figures.
  • The time-series analytics works for any time frame and for any article, category or customer segment using advanced in-memory technology for instantaneous insights.

Analyse Your Assortment Now

IconicC digital provides advanced analytics and scenario simulation to analyze sales and supply chains that are in crisis and disruption.

  • Run demand and supply scenarios end-to-end with real data,
  • Calculate scenario effects down into the firm’s P&L statement,
  • Decide corrective action based on data- driven scenarios.