Overview

ITR Software (ITR) has directed its efforts to developing tools that assist in the retailer buying process.  The buying process initiates the retail business cycle and if managed intelligently, allows the remaining stages of the cycle to flow much more profitably.  From an application perspective, our premise is that purchases that are the result of well researched trends  sensitive to local preferences (e.g. style characteristics, color, size, etc.) will yield superior financial performance and greater customer satisfaction.

What is WorkMate Size Optimization?

WSO is application software that is designed to provide retailers with the ability to improve the profitability of their merchandise investment through the identification of size selling trends by location and the generation of recommendations as to the purchasing and allocation of sized merchandise.

This approach is based upon the presumption that retail store locations seeded with merchandise assortments that best meet local demand will improve customer service and increase GMROI.

ITR’s proprietary algorithms and models identify lost sales opportunities, recommend pre-pack size and construction and stage new season assortments that correct historical sizing errors from previous seasons. Furthermore, the resulting WSO optimized size models can minimize stock outs and overstocks.

What are the functions of WSO?

WSO consists of two primary functions: Size Profiling and Pack Optimization.

The functions of Size Profiling are:

• Calculation of “Lost Sales” of items that have reached an out-of-stock condition in a size(s), where other sizes continue to record sales. 

• The development of Size Contribution Tables (SCT) by location using various performance metrics, including Lost Sales, contained in the WSO data mart.  Our customers have found that the application of these ‘curves’ during theb buying process have resulted in 10-20% improvements in sell-thru, at full price.

• Store Modeling using ‘sister stores’ for establishing Size Curves for new stores.

The functions of Pack Optimization are:

• The development of optimal Pre-Packs in the WSO ‘Pack Builder’ function using Location based Size Curves.  These Pre-Packs can be constructed to contain multiple iterations of a pack, e.g. 12A, 12B, 12C.

• The development of quantity targets by location by size for styles or style/colors for an Assortment, Order or Allocation via the application of Size Contribution Tables, as created in Size Profiling.

• The WSO Optimization Engine develops a recommended allocation of packs by location utilizing the available Pre-Packs layered on the Target quantities by location by size. (Example above)

• The WSO Optimization Engine can be executed in two modes.  The “Packs Only” mode forces the store / size targets to be met with packs within a one pack tolerance.  Whereas the “Packs & Pieces” mode will fill with packs, and the variances will be captured as pieces.

• When integrated with the retailer’s PO System, WSO will build PO line items for total Packs to order as well as Bulk Units by Size for the “pieces’ portion of the Optimization.

What data is needed to support WSO?

• Hierarchical Data (also know as Structural Data) that defines the relationships of the merchandise and location hierarchies.  Such as: Departments, Classes, Sub-Classes; Product Attributes and Location Attributes
• Performance Data for approximately 3 years by SKU, by Location, by Week
• Performance Metrics including Sales @ Full Price, Sales @ Promo, Sales @ Markdown, Receipts, On-Hand and On- Order.
• Unit need by Location for each Style/Color to be Optimized

How do I get started with WSO?

The WSO software can be licensed and implemented in the retailer’s systems environment or ITR can provide the capabilities of WSO as a service.   The service option is available as a one-time event or it can be provided on a periodic basis.

Please contact us at 856.309.2080 to learn more about this exciting new approach and the various options for using WorkMate Size Optimization!