sportscheck - we do sports

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Success Story SportScheck GmbH

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Page 1: SportScheck - We do sports

Success Story SportScheck GmbH

Page 2: SportScheck - We do sports

Precision landing with predictive analytics

SportScheck is one of the largest retailers of sporting goods in Germany. As a

multi-channel company, it is a specialized provider of equipment and clothing

for nearly every type of sport. At SportScheck, the multi-channel strategy means

16 sales locations across Germany, 30,000 items from 400 international brands,

four main catalogs with up to 660 pages, and a range of specialty catalogs. To

view the complete catalog and store product lines, visit www.sportscheck.com.

Sporting service: Thanks to the cooperation with Blue Yonder, SportScheck,

one of Germany‘s largest providers of sporting goods, has improved the qual-

ity of its forecasts by 20 to 40 percent. Especially in online trade, this multi-

channel company anticipates even more forecasts on the item level during the

next project phase.

The greatest complexity and immense quantities of

data: Blue Yonder predicts item sales in SportScheck‘s

online shop with great precision.

Why Blue Yonder?

“Changed consumer behavior presents us with enormous challenges:

customers are ordering online more and more often and return rates are increasing.

In the online sector, there is a multitude of factors involved and we have to deal with an

immense quantity of information. We need software that can map this complexity and also

incorporate all aspects of visitor behavior . We cannot afford to make incorrect predictions,

for these have a significant effect on the success of our business.“Günther Harant, Procurement Manager at SportScheck

Page 3: SportScheck - We do sports

“The structural change in retail trade from the catalog to the Internet

has presented us with entirely new challenges. With the unique solution developed

by Blue Yonder, sales figures can be predicted exactly.

This is crucial for success in the difficult online trade.“Günther Harant, Procurement Manager at SportScheck

With 1.1 million customers in retail trade, approximately 17 million

customers in stores, and 35 million visitors to its online shop each

year, handling huge quantities of data is part of daily life at Sport-

Scheck. The online shop increases complexity significantly in this

respect. Günther Harant, Procurement Manager at SportScheck:

“The structural change in retail trade from the catalog to the Internet

has presented us with entirely new challenges. Blue Yonder bundles

methods into a unique solution in order to predict sales figures pre-

cisely. This is crucial for success in the difficult online business.“

Blue Yonder follows structural change towards e-commerce

In contrast to the classic catalog customer, visitors to the online

shop are much more difficult to hold on to. The weather, marketing

activities on the part of manufacturers, and the positioning of the

items in the shop: Customer react spontaneously to a wide range

of different factors. As time goes on, the self-learning forecasting

software Blue Yonder learns how the various external variables

and the interplay of different factors in the shop affect anticipated

sales. This might be the behavior of customers during the order

process: Are their shopping carts actually submitted? How high is

the abandonment rate? Where is the customer at the moment? The

software can also handle the dynamics of an online shop very well

because, in contrast to a catalog with fixed placements, the online

items are ranked according to their success and thus their positions

change constantly. In addition, each visitor is presented with vari-

ous items in a unique sequence according to individual searches he

has conducted and his profile.

Sales forecasts for the online shop are extremely complex

Compared with the usual method, Blue Yonder can be used to reduce

the average absolute deviation of the forecast from the actual sales

figures by half. The return rate is also determined more precisely. In

addition, the software achieves very good results for the forecast-

ing of clothing sizes. Currently, the materials planners compare sales

forecasts from the classic shopping calculator and the Blue Yonder

forecast for each individual item. They weigh up results themselves

and order on this basis.

Determining return rates precisely

For three years, SportScheck has been working with Blue Yonder to

improve the quality of sales forecasts on the individual item level.

“Changed consumer behavior presents us with enormous challeng-

es: Customers are ordering online more and more often online and

return rates are increasing. In the online sector, there is a multitude

of factors involved and we have to deal with an immense quantity

of information. We need software that can map this complexity and

also incorporate all aspects of visitor behavior. We cannot afford to

make incorrect predictions, for these have a significant impact on

our net profits.“ NeuroBayes determines relationships among count-

less factors (Big Data) and creates very precise sales forecasts in real

time. The software is designed so that sudden developments can

be recognized and taken into account quickly. “We can react more

quickly and flexibly,“ says to Günther Harant. This is how Blue Yonder

has improved its forecasts by 20 to 40 percent in the past three years.

Forecast improvement of 20 to 40 percent

Page 4: SportScheck - We do sports

Blue Yonder GmbH & Co. KG

Karlsruher Straße 88

D-76139 Karlsruhe

Phone +49 (0)721 383 117 0

Fax +49 (0)721 383 117 69

[email protected]

www.blue-yonder.com

Use your data to navigate to successStill have any unanswered questions? Looking for a partner who

can help you develop forecasts that are specifically tailored to your own sets of data? Contact Dunja Riehemann (Tel +49

(0)721 383 117 36, [email protected]) to join

us in this visionary venture.

For more information, visit us at: www.blue-yonder.com