Using data to provide the best experience for customers To bring these experiences to customers , having a secure grasp on data is key . As Van Oosten explains , data can provide a number of benefits , from enabling personalisation and ‘ frequently bought together ’ features for customers , to implementing more sophisticated planning .
“ With data , we can perform more sophisticated demand capacity planning ,” he comments . “ When we ’ re buying garden furniture , which might be for next season , usually there is a 10 to 14-month lead time on that . But how do we know today what next summer will be weather-wise ? Is there going to be a demand for rattan furniture or wooden furniture ? Is there going to be a specific shape or colour that will be a favourite for customers ? That requires the ability to use random forest analysis approaches , which build on those very fundamental pieces of data and allow you to become more and more sophisticated .”
A solid understanding of data also enables Kingfisher to more efficiently manage inventory , as Van Oosten explains .
“ When you are looking at inventory in the stores , perhaps you sell most of it , or you had a good buy ,” he explains . “ Do you mark that inventory down , or do you bring it back into your warehouses and save it for next year ? Those decisions require a good understanding of data , and machine learning and artificial intelligence ( AI ) to help you to have a good approach around markdowns and promotions .
“ If you have 300 stores , as B & Q does , and you have 35,000 SKUs and you sell for over 300 days a year , you do the maths - a spreadsheet and a human brain cannot cope with this . You need to be supported and enhanced by data and the internet .”
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