The flexibility of the Algo Service model has been crucial for Big W’s success in adapting quickly to market changes, optimizing sales and inventory, and expanding into new segments.
Big W’s supply chain challenges
Big W, holding over 20% market share in Australia’s dynamic Books category, faces challenges in managing the influx of up to 900 new books monthly, dealing with intense competitive pricing and promotions, processing orders efficiently, and maintaining a unique and adaptable product range tailored to store size, demographic, and performance.
Algo’s solution for Big W
The introduction of the Algo service model has allowed Big W to be more agile to the dynamic nature of the Books category. A fluid range that changes on a weekly basis, along with a dynamic management of the products life cycle has allowed Big W to ensure that the new multiple new lines allocated weekly are distributed to the appropriate store locations based on the consumer demand of similar titles within the outlet.
The Algo allocation and replenishment solution as been tailored to allow for the complex ranging requirements of the Big W Books category.
The outcome being an optimized inventory position with maximized sell thru rates, minimal returns and a mark down strategy
that allows for minimal exposure for both the retailer and their publishing partners.
Big W’s results
Retailers face significant challenges in managing varied supply chain models and demand profiles for different product segments, making it difficult for merchandise teams to align planning requirements and meet consumer needs effectively.
“The Algo Service model has allowed Big W to react quickly and efficiently to an ever-changing market. Whether the challenge is to optimize sales and inventory while reducing SKU count; or expand quickly into a new market segment, the flexibility within the Algo model and their service provision has been of paramount importance to our success.”
Meredith Drake
Category Manager Books, Big W
“The Algo Service model has allowed Big W to react quickly and efficiently to an ever-changing market. Whether the challenge is to optimize sales and inventory while reducing SKU count; or expand quickly into a new market segment, the flexibility within the Algo model and their service provision has been of paramount importance to our success.”
Meredith Drake
Category Manager Books, Big W
