Case Study: OTTO achieves faster delivery, higher sales and lower returns with Blue Yonder Demand Forecast & Price Optimization

How OTTO is using artificial intelligence to improve customer experience

OTTO, a major German multichannel retailer that transformed from mail-order to online (www.otto.de), faces fierce e‑commerce competition, fast‑moving fashion trends and the challenge of keeping millions of SKUs available at the right time while minimizing end‑of‑season stock and returns. Long delivery times for partner products, complex assortment planning and a need for real‑time, data‑driven decisions put pressure on margins and customer satisfaction.

Working with Blue Yonder (now JDA Luminate), OTTO deployed AI‑driven Demand Forecast & Replenishment and Price Optimization to automate daily ordering and dynamic pricing. The result: vastly improved forecasts, goods ordered sold within 30 days at a 90% rate, partner delivery times cut from 5–7 to 1–2 days, higher sales and revenues, lower stock and return rates, and reduced shipping costs through smarter logistics and combined shipments.

OTTO

Mathias Stüben

Director Category Processes