Brazilian Footwear Retailer Paquetá Shoes Creates Competitive Differentiation with Inventory Insights

Oracle Retail Planning Solutions with Embedded Machine Learning Improve Gross Margin by 300%

Redwood Shores. Calif,—Apr 30, 2018

Today, Oracle announced that Brazilian footwear retailer Paquetá has deployed Oracle Retail Clearance Optimization Engine to drive profits and streamline inventory planning. This deployment rounds out Paquetá’s existing planning portfolio including Oracle Retail Merchandise Financial Planning, Oracle Retail Assortment Planning, and Oracle Retail Warehouse Management System.

With an established brand in Brazil, Paquetá The Shoe Company is a leader in style, quality, manufacturing and retail producing more than 65,000 pairs of shoes per day. However, like many retailers today, they are challenged to drive strong profit despite falling foot traffic for their 300+ stores across Brazil and abroad. This challenge led Paquetá to Oracle Retail solutions to create an innovative data-led approach, to establish a competitive edge and build a culture of trust and optimism in a tough economy.

“Driving and converting foot traffic requires fresh assortments, but that must be balanced very carefully when your customers have less disposable income,” said Eduardo Smaniotto, VP Supply Chain, Paquetá. “We cannot afford to have a customer disappointed due to lack of inventory and we also cannot hold excess inventory or take severe markdowns. Our margin for error is very small and therefore it’s essential that we have one source of truth across the business and manage to plan on a very granular level, on a daily basis.”

The Oracle Retail Planning suite offers a real-time, single view of inventory across 400,000 SKUs, 52 categories, 132 subcategories and 4 store formats enabling Paquetá to act with agility at scale. This single view empowers management to drive significant margin improvements by optimizing promotions and assortment strategies with machine learning. These intelligent solutions help predict and understand future demand to equip buyers with better, more accurate insight to what styles are most likely to sell and in what quantities.

“Prior to the transformation, each department worked with different metrics and had a different approach to planning. With Oracle Retail, we know what to buy, how much to buy, at what time and where it must be for customer fulfillment,” said Smaniotto. “By leveraging machine learning inherent in the Oracle solutions, we have reduced inventory by 26%, eliminated more than 20 categories with little sacrifice to top line growth, and improved profit margin by a factor of 3X.”  

Paquetá began their transformation with the implementation of Oracle Retail Merchandise Financial Planning to allocate inventory more profitably and Warehouse Management System to gain control of orders throughout the distribution process in 2015. Based on the success of that deployment, Paquetá pursued the remaining solutions in the portfolio and most recently completed the implementation of Clearance Optimization and Assortment Planning. Oracle PartnerNetwork Gold Level Partner Logic Information Systems provided knowledge and best practices, to ensure implementations were completed on time and on budget.

“By implementing the integrated suite of Oracle Retail solutions, Paquetá has set a foundation for growth.  These solutions will help the business to deliver a better customer shopping experience, to drive growth and performance, and to enable the business to identify and address new market opportunities,” said Ray Carlin, senior vice president and general manager, Oracle Retail.

“One of the greatest advantages of adopting a robust Planning and Optimization solution is the rapid return these solutions offer through a smart implementation plan. Our local Brazil Planning Optimization teams bring the right balance of business, technical and science understand to empower our clients by deploying highest-value returns first,” said Amber Naqvi, President, Logic Information Systems.

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