KappAhl Capitalizes with Allocation Precision
Company Size
1,000+
Region
- Europe
Country
- Finland
- Norway
- Poland
- Sweden
Product
- Luminate Retail
Tech Stack
- Artificial Intelligence
- Machine Learning
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Productivity Improvements
Technology Category
- Analytics & Modeling - Machine Learning
Applicable Industries
- Retail
Applicable Functions
- Sales & Marketing
Use Cases
- Demand Planning & Forecasting
- Inventory Management
Services
- Software Design & Engineering Services
- System Integration
About The Customer
KappAhl is a leading Nordic retailer with 400 stores across Sweden, Norway, Finland, and Poland. The company offers 12,000 unique style/color combinations per season. KappAhl was previously using two home-grown systems to perform approximately 3,800 allocations per night. However, these systems were not providing the level of detail and flexibility required to meet the company's goals. KappAhl needed a solution that could improve its allocation precision and size compliance with local demands, while also improving sales and maintaining margins.
The Challenge
KappAhl, a leading Nordic retailer, was facing challenges with its allocation system. The company was performing approximately 3,800 allocations per night on two home-grown systems, which were no longer meeting the demand. The former systems were automated but did not allow the company to work at the lower level of detail required to achieve its goals. With 12,000 unique style/color combinations per season across 400 stores in Sweden, Norway, Finland, and Poland, KappAhl needed greater flexibility and expanded capabilities to improve sales while maintaining margins.
The Solution
KappAhl implemented Luminate Retail, a solution powered by artificial intelligence (AI) and machine learning (ML) technology. The implementation took about 12 months, including two months of testing. Luminate Retail now manages 95 percent of all KappAhl allocations, representing 80 percent of crossdock flows and 100 percent of replenishment. This solution has provided KappAhl with the flexibility and capabilities it needed to improve its allocation precision and size compliance with local demands.
Operational Impact
Quantitative Benefit
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