Predictive Analytics solution for efficient goods allocation, purchasing and restocking in various locations
Implement a centralised command control centre that analyse historical sales data and trends for better seasonal events planning
Challenge
Locating major operational loopholes, Speeding up transaction execution, Receiving customer insights & enhancing business continuity plans
Solution
Predictive Analytics solution for efficient goods allocation, purchasing and restocking in various locations
Technologies and tools
Python, Scikit-learn, Implicit, Docker
Client
The client is one of the leading health and wellness companies in Australia. Since the first launch in Australia in 2020, they have developed into a one-stop destination for all health and wellness relation customer journeys, selling a wide selection of different products for various people. Their business has over 500k customers and are operating globally spanning across 50 stores operating in 3 cities in Australia.
What did we solve
Our client opts to implement a centralized command control center that analyze historical sales data and trends for better seasonal events planning. Using our solution, it helps them to calculate demand forecasts and utilize data analysis and visualization for staying ahead with the market demands. System has been deployed on their CRM Portal that allows real-time centralized viewing of all the customer data across the various channels. This not only made the operational process swifter but also provided transparency, unbiased data view, & also enhanced store manager productivity. These were the challenges of the first phase of the deployment process. In the second phase, we also enabled footfall & demographic analytics, helping identify trends in various forms.
Features
-
Inventory Management Optimisation
-
Store theft prevention
-
User Management
-
Audit Report & Empirical Data Analysis
-
Footfall Analytics
-
Demography Analytics
-
Better brand recognition
-
Data-Driven Retail strategy
-
Client Segmentation
Situation
Every business, including our client, is required to submit frequent reports to higher management on the status of their sales, customer insights, and business operations. There are multiple heterogeneous data flows because of these reports. Traditional reports were used for the same, where the data is not always transparent and accurate. The client sought a solution that could provide them with centralized visibility over various platforms while also providing accurate customer analytics that will be flexible for API integration to platforms such as Power BI.
Key requirements of the client:
-
Locating major operational loopholes
-
Speeding up transaction execution
-
Receiving customer insights & enhancing business continuity plans
When the client got in touch with the technology consultants at 27AI, we were able to grasp their industry's peculiarities quickly & comprehend the motivations behind the implementation of 27AI’s predictive analytics solution.
Related cases
Solution
Our development strategy revolved around utilizing collaborative filtering techniques, particularly matrix factorization, commonly employed in recommender systems, tailored for the health and wellness industry. We exclusively relied on historical data pertaining to user-product interactions, abstaining from incorporating specific user or product information. Opting for simplicity and effectiveness, we adopted an implicit ALS implementation to train our model on sparse data, complemented by a substantial amount of user transaction data provided by the client in the health and wellness sector.
In training the model, we leveraged a confidence metric to prioritize items with multiple purchases over those with single purchases. Addressing the challenge of a considerable number of users with minimal purchase history in the health and wellness realm, we implemented various supplementary techniques to refine the model's recommendations. Consequently, our efforts aimed to enhance the algorithm's comprehension of user preferences, ensuring personalized recommendations, and mitigating the tendency to suggest identical items to all users within the health and wellness context
We customized the model to suit the needs of the health and wellness company, enabling it to perform the following tasks:
-
Providing personalized item recommendations to users.
-
Identifying users with similar preferences for health and wellness products.
-
Recommending potential buyers for specific health and wellness items.
-
Suggesting alternative health and wellness products.
Our solution effectively catered to the health and wellness company's requirements by:
-
Personalizing the search process extensively for health and wellness products.
-
Automating routine tasks typically handled by staff, specifically in the context of health and wellness retail.
-
Ensuring a superior online shopping experience focused on health and wellness.
-
Strengthening customer loyalty within the health and wellness sector.
The 27AI’S team provided our client with a comprehensive product demo session before beginning the pilot project. Together with our client, we set out to analyze the concept behind the implementation process and consider the demands and potential obstacles.
What did we achieve
Customer diversified its business strategy with 100% centralized visibility, along with minimizing theft and losses, & established itself as a trailblazer in the industry.
The footfall & demography analytics, with 99.7% algorithm accuracy, posed as an efficient AI solution that drove targeted marketing efforts.
27AI offered real-time data for strategic analysis and decision-making, assisting prominent market actors in performing their duties more effectively.
Impact
-
100% Centralized Visibility
-
<99.7% Algorithm accuracy
-
38% Reduction in CAPEX
-
15% Reduction in OPEX