Written by Business Cloud News
Cloud app provider Infor has invested $25 million in data scientist Predictix with a brief to use its powers of analysis to solve the problems troubling modern retailers.
Infor will become a reseller of Predictix, incorporating its applications in the Infor cloud and its CloudSuite offering aimed at the Retail sector. Atlanta-based Predictix had 40% growth in SaaS subscriptions in 2015, has five of the top 15 global retailers as customers and manages $60bn in weekly forecasts. Its technology platform LogicBlox, which underpins all Predictix applications, has attracted funding from DARPA, the US Defense Advanced Research Projects Agency. The Infor cloud has 40 million users.
The addition of Predictix to CloudSuite Retail brings modules that support demand forecasting, merchandise financial planning, assortment planning, category management, network flow optimization and optimisation of allocations and markdowns.
Cloud based demand forecasting could be 50% more accurate for retailers, claims Predictix, since it is more elastic and can apply self-learning algorithms to unlimited amounts of data. The improvements in forecasts leads to higher sales and greater profitability for retailers, it claims. Merchandise financial planning, meanwhile, increases the retailer’s powers of diversifying and creates more revenue out of existing product lines, according to Predictix. Assortment planning and category management, on the other hand, can create up to $20 million in annual benefit for every one billion dollars in sales.
Network flow optimisation, meanwhile, saves retailers money by modelling their entire supply chain network, analysing the wastages and offering new more efficient alternatives. The allocation and markdown optimisation services promise to give retailers up to 20% greater revenues and profit. Predictix is suitable to all types of global retail including online, brick-and-mortar, social, mobile, fashion, hardlines, mass-merchant and grocery, the vendor says.