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RetailSolution

Assortment & Merchandising Optimization

Optimize what to stock where (assortment and shelf space) from local demand instead of gut feel.

Solution
Machine Learning
Industry
Retail
Company Size

Solution Overview

industry
Retail
solution
Machine Learning
technologies
Azure Machine Learning, Microsoft Fabric, Dynamics 365 Commerce, Power BI, Azure OpenAI

The Challenge

Assortment and shelf space are set centrally and applied broadly, so a store in a business district carries the same range as one in a residential suburb and both get it partly wrong.

  • 1One-size-fits-all assortment ignoring genuine local demand differences
  • 2Dead stock and stockouts coexisting across stores for the same SKU
  • 3Manual planogram and space planning too slow to keep pace with demand shifts

Our Approach

CloudGate models localized demand and profitability by store, cluster and SKU to recommend assortment and shelf-space allocation that reflects each location's actual customer base.

  • Store-level assortment recommendations driven by localized demand modeling
  • Shelf-space and planogram optimization weighted by margin contribution
  • Store clustering by demand pattern rather than by geography alone

Typical Outcomes

Higher
SELL-THROUGH RATE
Lower
DEAD STOCK AND WORKING CAPITAL
Localized
STORE-LEVEL ASSORTMENT

Typical outcomes for this solution pattern, not the results of a named client engagement.

Technologies Used

Azure Machine LearningMicrosoft FabricDynamics 365 CommercePower BIAzure OpenAI
Full architecture and data flow in the Data & AI Catalog

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