The Evolution of Retail Tech: Why Assortment Optimization is Ripe for Disruption
The retail landscape constantly evolves, driven by changing consumer preferences, supply chain complexities, and intensifying competition. In this dynamic environment, the ability to make data-driven decisions has become paramount for retailers. One company, HIVERY, is at the forefront of this transformation, harnessing the power of data to reshape assortment optimization and category management. This blog post explores why assortment optimization is ripe for disruption and how HIVERY is leading the charge.
The Birth of HIVERY
HIVERY's journey began as an intriguing experiment in helping a Coca-Cola Bottler in Sydney, Australia, optimize their vending machines using artificial intelligence (AI). This experiment was remarkably successful, but what's even more intriguing is how it paved the way for something much larger. HIVERY demonstrated that assortment optimization could be achieved with just sales data and a set of complex vending machine products and space constraints. It was clear that AI had the potential to revolutionize the way retailers approached their product assortments.
Why Assortment Optimization Matters
Traditional category management in retail has faced numerous challenges. Retailers must balance the need to serve local shoppers effectively while working within constraints like maximizing space productivity, ensuring the right assortment breadth and depth, and adhering to supply chain and operational limitations. This complex puzzle can only be solved by understanding the intricate patterns that store-level analytics can unveil. HIVERY recognized that assortment optimization and category management were ripe for disruption because traditional methods were falling short in the face of rapidly changing consumer demands.
What sets HIVERY apart is its innovative use of AI and data analysis to tackle assortment optimization and category management. The company leverages AI to analyze every store/item combination, uncover micro-trends, and provide previously impossible insights. This approach allows retailers to make data-driven decisions that result in locally relevant, effectively merchandised, and operationally efficient category plans.
In a conversation with Jason Hosking, CEO & co-founder of HIVERY, he highlighted why assortment optimization became a focal point for disruption. The success of HIVERY's initial venture with vending machines revealed the potential for AI to address the assortment of challenges retailers face. Hosking emphasized that HIVERY's mission is to transform decision-making in commerce for retailers and brands, disrupting an industry that significantly impacts their top and bottom lines.
Impact on Retailers
The impact of HIVERY's AI-driven solutions is tangible. By harnessing vast store-level data, retailers and CPG brands can optimize assortments, reduce stockouts, and enhance shopper satisfaction. HIVERY's approach has driven millions of incremental revenue dollars to retailers while improving operational efficiency. This transformative effect is reshaping the way retailers operate and make decisions.
In the ever-changing world of retail, assortment optimization, and category management are critical components of success. HIVERY's innovative use of AI and data analysis is revolutionizing these areas, providing retailers and CPG brands with the tools they need to thrive in a dynamic market. The future of retail tech lies in the hands of companies like HIVERY, which are committed to continuous innovation and reshaping the retail landscape.