Tailored Brands is leveraging AI technology to optimize inventory management for its events business (company photo)
Inventory management is a perennially difficult function to get right. Retailers are effectively placing continual bets on where, when and how much demand to plan for, with a direct impact on profit or loss. Add in an omnichannel business model, and the game gets even trickier.
Tailored Brands, an omnichannel menswear and formalwear retailer that includes Men’s Wearhouse and Jos. A. Bank, needed a way to anticipate customers’ evolving preferences for various style, color and size choices in its tuxedo rental business. To that end, the company was looking for a more advanced approach to optimizing its inventory planning and allocation. The company has recently been implementing digital tools to help customers choose wedding attire and ensure a proper fit.
Tailored Brands chose Invent Analytics, whose platform with automated decision-making capabilities helps retailers optimize inventory levels to maximize profitability. The company has been able to achieve higher forecast accuracy and more precise inventory planning for the unit, including optimized buying at style-size level, increasing product availability, sales and profit. It also substantially reduced stock-outs, improving overall customer satisfaction.
Scott Vifquain, CTO of Tailored Brands, and Gurhan Kok, founder of Invent Analytics, talk about how the AI-based technology was applied, and the results so far in our MCM CommerceChat podcast.