TECHNOLOGY

Footwear retailer uses artificial intelligence to optimize fulfillment

BY Deena M. Amato-McCoy

Aldo is streamlining ship-from-store orders through a real-time analytics solution.

Canadian footwear and accessory retailer The Aldo Group operates two brands, Aldo and Call It Spring, and a multi-brand retail concept, Globo. By adding an analytics-based solution from retail-focused AI and optimization provider Celect, Aldo is optimizing the fulfillment of online orders from all corporate stores across its global network.

Celect Fulfillment Optimization solves issues that often arise with traditional order management systems (OMS) that cannot balance multiple, and often conflicting business objectives. These issues are exacerbated by outdated systems, including an unnecessary increase in costs, a decline in key metrics, a marked decrease in a retailer’s margins and, most importantly, a negative impact on the customer’s overall experience with the brand.

Celect’s ability to make dynamic optimization trade-offs across orders – as opposed to processing one order at a time – improves key performance metrics, including reduced split-shipments, lower shipping costs and improved delivery times. It also accurately predicts customer demand in real-time and subsequently determines which stores have more inventory than demand requires.

Since deploying the solution, Aldo fulfills online orders from the most profitable location. This provides the company with the ability to intelligently avoid selling from locations that are more likely to sell out, while targeting stores more likely to experience a lower demand for a particular item, according to the company.

“Retail is in a transformational phase and we are excited to continue our growth through advanced analytics and optimization,” said Jennifer Maks, senior VP of omnichannel, Aldo Group. “The fulfillment optimization initiatives put into place have proven extremely successful to date, and have produced strong results for our company. We look forward to continuing this positive trend in the coming years.”

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