DemandTec is expanding its support for short lifecycle categories and softlines with the acquisition of Applied Intelligence Solutions (AIS). “Adding AIS’s advanced pattern recognition science, domain expertise, and technology to our footprint is a natural fit for DemandTec,” said Dan Fishback, President and CEO of DemandTec. “Through this transaction, DemandTec expands its existing support for the full spectrum of merchandising and marketing processes for short lifecycle categories like consumer electronics, home goods, and softlines.”
DemandTec, the collaborative optimization network for retailers and consumer products companies, has acquired substantially all of the assets of Applied Intelligence Solutions, LLC (AIS), a developer of intelligent software solutions for the retail enterprise. With this transaction, DemandTec has secured intellectual property applying complex pattern recognition techniques to softline and other short lifecycle retail categories.
“Many of our existing customers and partners have asked us to support short lifecycle products with the same analytics and optimization functionality our customers enjoy for fast-moving consumer goods,” noted Fishback. “With the acquisition of AIS and the immediate availability of their proven markdown optimization solution, we are pleased to officially offer this newest of capabilities on the DemandTec network.”
“Bringing expanded softline capabilities and expertise to a market leader like DemandTec introduces a unique merchandising solution for retailers today,” added Jim Dixon, President and Chief Executive Officer of AIS.
The acquisition has received an immediate positive response from at least one current AIS retail customer. “We are excited to see DemandTec, with their proven industry solutions and market recognition, expand their product footprint by acquiring the assets of AIS,” said Jeff Gordman, President and CEO of Gordmans. “We believe that this combination will allow Gordmans to leverage innovative predictive analytics software to optimize pricing and reorder decisions.” Gordmans operates 68 stores in 16 Midwestern and surrounding states, selling discounted name brand fashions and styles, as well as accessories, footwear, home decor, gifts, designer fragrances, fashion jewelry, bedding and bath, accent furniture and toys.
DemandTec plans to leverage AIS’s MarkdownXpert workflow and science in Markdown Optimization, a DemandTec software service currently used by multiple retailers which allows the design of optimal plans that set markdown timing and depth to maximize profitability and inventory objectives for clearance items. Markdown Optimization is a component service of DemandTec Lifecycle Price Optimization.
Additionally, as part of the transaction, DemandTec has acquired a U.S. patent relating to behavior recognition, bringing DemandTec’s patent portfolio to a total of 25 issued patents, including 20 in the United States and five internationally. All software services are delivered on DemandTec, a network of common tools for more than 280 retailers and consumer products companies to transact, interact, and collaborate on core merchandising and marketing activities. More than 13,000 retailer and manufacturer end-users on DemandTec have collaborated on nearly four million trade deals to date.