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OTTO is Using Artificial Intelligence to Improve Customer Experience

“Through the artificial intelligence algorithm, our forecasts are constantly improving. This way, we get precise results that help us plan and control a future-oriented product range.”

Mathias Stüben,
Director Category Processes, OTTO

Replenishment Optimization & Price Optimization

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The Challenge

Positive customer experience is at the heart of OTTO's success. To wow and retain customers, OTTO offers everything on one platform: a comprehensive selection of products at competitive prices with excellent service. OTTO's success is built on attractive offers, the highest availability of goods and quick delivery times. All of these elements are entwined, which presents a challenge. The retailer needs to strike the right balance to be successful amid fierce competition. 

The Solution

Blue Yonder is continually developing AI solutions in partnership with OTTO. The solutions adapt quickly and flexibly to circumstances in the increasingly changing market and make it possible for OTTO to achieve superior results within its business.

The Results
  • Higher quality predictions
  • Less end-of-season waste
  • Shorter delivery times
  • Lower shipping costs through optimized logistics
  • Lower return rate
  • Increased sales through more demand
  • Maximized profit through intelligent pricing strategies
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Demand Forecast & Replenishment

Reduce out-of-stock rates by up to 80% without increasing waste or inventory

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  • 10x

    increased product availability

  • 80%

    out-of-stock rate reductions

  • 50x

    fewer manual interventions

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Price Optimization

Optimize pricing decisions for every product, while improving revenue and margins by more than 5%

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  • 15%

    improved revenues

  • 5%

    improved profits

  • 20%

    stock levels reduction

Businesses Using Demand Forecast & Replenishment

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Kaufland Optimizes Its Replenishment Process

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Successful Demand Forecasting at dm

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Natsu Optimizes Its Sales Planning and Reduces Leftover Stock by 20%

Read the success story