One client of SAFIO Solutions had a severe overstock problem. Merchandise had been allowed to build up over the course of several years. Old styles were not liquidated before new styles were purchased. Some of the old styles had only minimal sales for several years. SAFIO Solutions was able to help the company clarify and categorize their data.
A new product hierarchy was developed which gave the company visibility to which categories and attributes were performing well and which ones needed to be cleaned up.
It also gave the company clarity in where they were over-assorted.
The merchandise was categorized in an ABC format according to Revenue and Margin performance. From there, the company could determine which items were candidates for liquidation.