- This is the 2nd consecutive edition of this Gartner Market Guide to list Nextail as a Representative Vendor.
- Newer entrants bring data-centric solutions focused on AI and ML deployment in the retail supply chain environment
MADRID – Nextail, the merchandise planning platform for fashion, has been named as a Representative Vendor in the latest Gartner “Market Guide for Retail Forecasting, Allocation and Replenishment Solutions”. This is the 2nd consecutive edition of the Market Guide to list Nextail as a Representative Vendor.
Gartner defines retail forecasting, allocation and replenishment solutions as those “that support the supply chain planning needs of merchandising organizations. Solutions provide aggregate and detailed demand planning and forecasting capabilities, in addition to supply planning capabilities. They focus on both perpetual inventory replenishment needs and also product allocations based on defined product attribute curves”.
The recent Market Guide, produced by Gartner analysts Caleb Thomson, Gerhard Grimm and Tessa Mahon offers recommendations specifically for retailer supply chain leaders charged with sifting through the many options available when considering partners providing retail forecasting, allocation and replenishment solutions.
According to Gartner, “Retailers continue to struggle with maintaining legacy supply chain solutions alongside needs for modernization to support greater collaborative planning and data-centric planning techniques. These techniques leverage AI and ML (machine learning) capabilities and lag in other sectors.” The situation is even more in fashion retail as “apparel and footwear segments are also trailing the overall sector for AI/ML capability adoption”, Gartner finds.
While many different providers of retail forecasting, allocation and replenishment solutions exist, Gartner reports that the market consists of the strong presence of mature, historic providers along with newer entrants, such as the case of Nextail, that “tend to bring data-centric solutions focused on deploying ML and AI techniques into the retail supply chain environment.”
The report finds that these newer entrants also, “bring innovative approaches to technology modernization.” Gartner notes that legacy retail forecasting, allocation and replenishment platforms and solutions continue to pervade, “presenting the opportunity for smaller and lower cost vendors to gain a foothold in one functional area, with a clear future opportunity for further expansion.”
Nextail offers AI and ML-driven, hyperlocal demand forecasting across its entire solutions suite which includes in-season Allocation and Replenishment. These solutions, embedded with fashion retail expertise and developed specifically to meet industry-specific use cases, enable such retailers to maximize sales potential while lowering inventory levels and achieve a 1.5% sell-through increase measured in current Nextail customers.
Fashion organizations should consider proven industry-specific forecasting, allocation and replenishment solutions as opposed to overgeneralized options when selecting a retail forecasting, allocation and replenishment solutions partner. As Gartner states, “Each merchandise type will have distinct supply chain needs around forecasting, allocation and replenishment, based on established practices and methods, including inventory management and distribution”.
Joaquin Villalba, CEO of Nextail, adds, “Flexibility in the use of inventory is essential for success in today’s unpredictable retail world. Traditionally, fashion retailers plan their seasons 9-12 months in advance, trying to predict store and customer behavior. To stay competitive, retailers need to use fresh data and automation to make fast in-season revisions, as actual needs will differ from what was expected months ago during the planning phase.”
Through the use of Nextail demand forecasting across allocation and replenishment solutions, major global fashion retailers typically see 30% lower coverage levels, 60% fewer stockouts, and can increase sales by over 3% and the average weight price of items by over 5% (adjusted for inflation). And by entirely automating in-season processes, retailers can even reduce manual work associated with allocation and replenishment by up to 90%.
Commenting on the recognition, Villalba continued, “We are proud to be named again in the Gartner ‘Market Guide for Retail Forecasting, Allocation, and Replenishment Solutions.’ We believe this recognition highlights our commitment to helping fashion retailers worldwide transform into companies that listen more closely to their customers at scale through the use of the latest technologies.”
Gartner disclaimer:
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in our research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
View the 2024 Gartner Market Guide for Retail Forecasting, Allocation and Replenishment Solutions (Gartner subscription required).
Learn more about the Nextail merchandise planning platform and solutions for fashion retailers.
