AT&T Inc.is the world’s largest telecommunications company, the second largest provider of mobile telephone services, and the world’s largest provider of fixed telephone services in the US.
AT&T found themselves sending each of their 2,200+ retail locations the same national assortment. Realizing that this was not ideal, internal management sought to divide their stores into tightly knit clusters.
Originally starting with only Store Clustering, AT&T extended the project to include Assortment Planning in the hopes of greatly diminishing their product obsolescence.
The Assortment Planning implementation enabled AT&T end-users to have different and optimal assortments by cluster. The project implementation empowered users to see actual data indicating which items have performed well historically within selected clusters.
The ranking systems that have been deployed allowed their plan-o-gram system to know which items to include in the final optimized assortment. As a result, AT&T was able to ensure a variety of items across price tiers within the assortment.
The solution also provided an in-season planning process when elapsed period becomes actualized – thereby increasing efficiencies and results. Lastly, by enabling the creation of test clusters for new products, AT&T can now evaluate product performance earlier and maximize national expansion.