Product Segmentation for Inventory Management

Product Segmentation is the process of the parsing products into separate groups relationally with robust analytics and machine learning algorithms. In the retail and inventory industry, product segmentation is oftenly used to manage planning, pricing, promotions and discounts on products.

What is the Product Segmentation?

Product segmentation generally divides products into clusters who have similar attributes by using machine learning algorithms. Thanks to the product segmentation extract many useful product groups such as products that sell more or less, seasonal favoritesof customers, out-of-stock items. This means that controlling the stocks and transfers of the products and also choose appropriate prices for products.

Challenges for Companies

Companies often deal with:

• Determines the optimum prices for products segments, decides whether product prices are increase or decrease.

• Management of the inventory systems. Decide which products will be brought to market and which will be withdrawn. Also need to give feedback their suppliers, retailers or manufacturers for product needs.

•  Deciding and planning every kind of the product developments.

Utility of Product Segmentation for Inventory Management

• You can select the optimal market price according to product segments for getting the highest financial gain.

• With product segmentation, product owners can manage their stores and their inventories. In this way, they can ensure that the right product is in the right place at the right time. This means that exact time and money consumption.

• You can also create a general sales strategy by following your product groups seasonally or instantly.

Why do you Choose Trendify?

•  Even if you have big and complicated product data, Trendify can prepare the data properly for the machine learning algorithms. Then it divides products into similar segments for your bussiness problem.

• Also with Trendify, you can determine the products that are low in stock, preferred by customers or that need to be taken back to the warehouse. According to the product group you can apply discounts, campains and advirtisements.

• Besides you can manage your stocks of store houses and stores considering to the different product segments precisely with Trendify product segmentation.

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