Bauhaus looks to future with new forecasting technology

German DIY retailer Bauhaus is relying on software-supported forecasts for the first time, as it looks to continue its recent growth story across Europe.

The business is using a host of retail technology systems to improve its product presence in selected stores and retail centres, as well as boost overall stock levels across its portfolio.

Currently operating in 17 European countries, the business was keen to implement technology that can take into account the conditions associated with specific local markets.

The retailer is also looking to build in the capability to plan for required materials, based on factors such as weather forecasts, which can be crucial to the health companies operating in the DIY sector. Trading statements from the likes of UK DIY retailers, Homebase and B&Q, often cite the positive or negative impact of the weather when explaining their quarterly sales performances.

Bauhaus chose predictive analytics provider Blue Yonder to help achieve its planning and forecasting goals, and the two businesses have been working on a roll-out strategy since forming a partnership in November 2013.

Blue Yonder's software as a service solution (SaaS) will be implemented incrementally throughout the year, across the retailer's German portfolio of stores. The initial phase will see ten Bauhaus specialty centres use the solution, with materials planners based at specific branch locations able to receive product recommendations via their mobile devices.

Within the year, the retailer hopes to use Blue Yonder's solution in all of its 160 German specialty centres, but the European phase of the project, which will begin in Austria, Slovenia and the Czech Republic, will not commence until the later on in 2014.

Jörg Schwede, CIO at Bauhaus, said that his company's partnership with Blue Yonder could lead to further collaboration between the two firms in the future.

He explained: "As a SaaS solution, Blue Yonder can be integrated with our existing system in a simple manner making it very manageable with regards to the personnel time and effort needed to implement a project like this."

To understand more about Blue Yonder, visit them on stand 348 at RBTE 2014, which takes place between 11-12 March 2014 at London's Earls Court.

Blue Yonder will be presenting in the RBTE Conference Programme with Michael Sinn, director supply and category management support at Otto Group.