Galeria manages its product supply with Blue Yonder’s AI-powered solution. Germany’s largest department store operator is using the US software company’s technology to align its stocks more precisely with customer demand, reduce markdowns and significantly streamline processes – in real time and across all distribution channels.
Blue Yonder’s solution uses artificial intelligence to automate demand planning for Galeria based on data, rather than the largely manual process used previously. The retail company, which appears to be stabilising again after severe cutbacks, lacked forecasting capabilities and system support in the past: it was unable to reliably predict future demand or to supply individual stores with goods accurately and precisely.
With Blue Yonder’s cloud-based platform, Galeria’s demand planning have become significantly more accurate based on historical sales data, promotional campaigns and external factors such as weather or events. The software automatically calculates the optimal replenishment of goods and helps to reduce storage costs. Galeria is making noticeable progress, particularly with seasonal and promotional items.
Focus on omnichannel integration
A key component of the project is the close collaboration between Galeria’s IT, purchasing and supply chain teams and the technology vendor. Together, they are developing a robust forecasting model based on comprehensive transaction data. Clearly defined interfaces enable seamless data integration across all relevant systems.
Galeria’s original goal in implementing Blue Yonder’s software was to create a customer- and demand-driven supply chain. However, the solution’s impact goes far beyond that, as Alexander Rings, Director of Inventory Management and Buying Analytics at Galeria, explains: “In fact, implementing the software has also changed our understanding of key business processes and requirements.”
