From Manual Spreadsheets to Automated Intelligence
Traditional replenishment relies on historical averages and manually-set parameters that quickly become outdated. Planners spend their days reacting to stock-outs and overstocks instead of strategically managing inventory. The Cybex Merchandising application changes the paradigm. By harnessing the conformed, near real-time data from the Cybex Retail AI Data Platform, we automate and optimize the entire replenishment lifecycle.
This is about more than just automating purchase orders. It's about creating a self-tuning system that understands demand at the most granular level, anticipates future needs, and preserves margin by optimizing every inventory decision.
Core AI Use Cases in Merchandising
Our application uses machine learning to generate precise, parameter-based replenishment quantities that adapt to changing trends, seasonality, and local demand signals.
1. Automated Replenishment & Forecasting
The system generates replenishment quantities based on a forward-looking demand forecast, not just historical sales. This ensures inventory levels are optimized for future sales, not past performance.
- SKU-Location Granularity: Forecasts are generated for every active SKU at every location, capturing unique local demand patterns.
- Parameter-Based Quantity Calculation: The system calculates replenishment needs based on forward Weeks of Supply (WOS) targets, safety stock levels, and presentation minimums.
- Weekly Seasonality Index: Demand forecasts are infused with a weekly seasonality index, allowing the system to proactively build inventory for holidays and promotional events and draw down during slower periods.
2. Intelligent Parameter Management
Static parameters are a primary cause of poor inventory health. Our platform uses AI to dynamically generate and recommend key replenishment parameters.
- Store Index (SiteIX): The platform clusters stores based on performance, volume, and other attributes, allowing for tiered inventory strategies and more accurate demand shaping.
- Size Index (SizeIX): By analyzing sales data at the size level for each store, the system generates a dynamic size index. This ensures that replenishment orders reflect the true size-level demand at each location, reducing size-level stock-outs and broken size runs.
- Dynamic Size Curves: The application generates optimal size curves for initial allocations and continuously refines them based on real-time sales data, ensuring new product flows are perfectly aligned with local demand.
3. Data Integrity for Strategic Decisions
Clean, reliable merchandising data is the bedrock of profitable retailing. Our platform ensures the data driving your inventory decisions is accurate and trustworthy.
- Foundation for Planning & Allocation: By providing a clean, granular view of performance, the platform empowers planners and allocators to make smarter decisions about assortment, buy quantities, and initial set strategies.
- Trusted Input for Financials: Provide finance with an accurate, forward-looking view of inventory investment and open-to-buy, improving financial planning and reducing inventory risk.
Key Benefits for Project Decision-Makers
Implementing the Cybex AI Merchandising application is a direct investment in inventory productivity and margin growth. Here's how it delivers tangible value:
Improved In-Stock & Sales
By precisely forecasting demand at the SKU-location level and optimizing replenishment parameters, you significantly reduce stock-outs on key items, directly increasing sales and customer satisfaction.
Increased Inventory Turns & GMROI
Automated, forward-looking replenishment avoids over-buying and ensures capital is invested in the most productive inventory, leading to higher inventory turns and a better return on your investment (GMROI).
Reduced Markdowns & Waste
Dynamic size curves and localized demand forecasting prevent the costly mistake of sending the wrong sizes or products to the wrong stores, dramatically reducing the need for end-of-season markdowns and transfers.
In-House Customization & Deployment Project
We partner with your team to deploy a Merchandising solution tailored to your unique business processes and data landscape. A typical project follows a clear, phased approach:
Phase 1: Integration (2-3 Weeks)
Connect to your data sources (POS, eCom, ERP, WMS). Our adapters map your native schemas to the Cybex conformed data model, establishing a single source of truth for sales and inventory.
Phase 2: Customization (2-3 Weeks)
Configure replenishment parameters (WOS, safety stock) and business rules. We train the initial set of forecasting and size index models on your historical data.
Phase 3: Deployment & Training (1-2 Weeks)
Go-live with the application. We provide dashboards, an order review workflow, and comprehensive training for your merchandising and planning teams to manage the system.
Ready to optimize your inventory with AI?
The Cybex Merchandising application is the key to unlocking inventory productivity and margin growth.