How AI in Retail Is Enhancing Efficiency, Freeing Retailers From ‘Excel Hell’
Since its inception, 7thonline has worked to revolutionize the retail and wholesale industry by integrating advanced data science with more than 25 years of business acumen. Founded by Max Ma, a former retail tech executive and data scientist, the company has catapulted from a start-up focused on wholesale buying and planning tools to a global leader providing omnichannel merchandise solutions. With a client list including brands such as Patagonia and Calvin Klein, 7thonline maintains its competitive edge by fostering innovation and adapting swiftly to industry changes.
Here, Ma, chief executive officer, and Lauren Taubes, director, highlight the company’s commitment to breaking down operational silos and enhancing collaboration across the board, ensuring tailored and flexible solutions that meet diverse client demands.
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WWD: Can you describe the journey of 7thonline and how it has evolved since it was first launched?
Max Ma: I founded 7thonline to help streamline retail and wholesale planning and to help people to be more efficient. For over 25 years, we’ve been empowering the retail industry with unparalleled demand visibility, advanced analytics and actionable insights. Ultimately our goal is to increase profitability, but I also have a deep desire to help the people create time to think so that they can be more innovative and think of new ideas.
Merging cutting-edge technology with proven business practices is always on my mind because of my experience as a data scientist and as a retail tech executive. I started working in retail as a software engineer for a CAD software company. It was there that I realized that the industry needed effective ways to boost inventory productivity. When 7thonline launched, one of our first products was a tool for wholesale buying and planning. We partnered with major wholesalers like Liz Claiborne, Jones Apparel Group and Kellwood. Over time, we expanded and evolved our solutions to focus on cross-channel inventory planning and execution, enabling both wholesalers and retailers to align supply with consumer demand. This had a highly positive impact on margins.
Today, 7thonline is committed to helping the retail industry move away from relying so heavily on manual processes to embracing technologies like machine learning and AI that can boost productivity and enhance profitability.
WWD: 7thonline offers a unique suite of solutions for omnichannel merchandise and assortment planning. How do you maintain your competitive edge in such a dynamic industry?
M.M.: We always have the opportunity to collaborate with “best in class” brands that set the industry standard for best practices. We’ve had the privilege to collaborate with some of the best retail brands, like Patagonia, Birkenstock, Calvin Klein, Canada Goose, Bestseller, among others.
It is important to constantly ask ourselves: Are we on the right track? Are we approaching this the best way? We have a passion for the fashion and retail industry that fuels our innovation. Our team is comprised of data scientists and former retail executives with extensive experience and this combination gives us insights into the problems our clients are facing and the data needed for the solution. We are able to do this by creating an industry specific platform that uses AI and machine learning to revolutionize merchandise planning and allocation and drives profitability.
Lauren Taubes: There are many retail technology companies out there and some offer services that are similar to 7thonline. But we are exceptional that we are able to integrate with technologies that clients already have and that we provide unique solutions for wholesalers that are breaking down silos and fostering more effective collaboration across the organization.
WWD: Leadership plays a crucial role in shaping a company’s culture. What leadership philosophies do you follow to inspire your team at 7thonline?
M.M.: My goal for 7thonline and for our clients is that we can have both business success and quality of life. It’s essential to find the right talent and trust in their abilities.
I believe that 7thonline will ultimately improve the quality of life of those in the industry as there is a more efficient use of time and drive better results. When clients realize the business improvements that can happen with technology and correctly using their data, the profits can be reinvested to drive enhanced success. Most clients that implement 7thonline see ROI within the first year. That makes us really proud and gives us the drive to continue to innovate and offer new solutions.
WWD: 7thonline serves global clients across various regions. Can you discuss any challenges you face while catering to such a diverse clientele and how you overcome them?
L.T.: Serving a global clientele, we see several challenges, primarily around inventory cycles and demand patterns. Each market has unique trends and seasonality, so a one-size-fits-all solution simply doesn’t work. To overcome this, we’ve built our platform to be highly flexible and adaptable, allowing clients to tailor planning and forecasting based on local data.
Additionally, global clients often face logistical and regulatory complexities. To address these, we provide real-time insights and AI-driven recommendations based on their history. This enables clients to make more accurate decisions. We also work closely with leadership to fine-tune our solutions. We want to make sure that we are in alignment with each client’s specific needs.
WWD: How does 7thonline ensure its solutions cater to both well-established brands and emerging players in the industry?
L.T.: By offering a modular, integrated approach, 7thonline helps both established and emerging brands improve speed to market, planning accuracy, and greater profitability. Our tools enable businesses to adapt quickly to changing market demands by truly using the data the companies have but do not use effectively.
We offer a flexible, data-driven platform tailored to the fashion and footwear industry, supporting top brands like PVH, Patagonia, Birkenstock, Michael Kors and Canada Goose across both retail and wholesale models. Our platform provides granular, real-time demand insights, down to the sku level at each store location for each selling week, helping businesses align inventory with localized demand and maximize productivity.
With solutions like merchandise planning, open-to-buy (OTB), pre-season assortment planning and built-in analytics, we enable smarter decision-making. Our tools streamline production forecasts, optimize allocation and replenishment, and enhance supply chain efficiency, ensuring products reach the most profitable channels.
WWD: Customer success stories are very powerful. Could you share a specific case where 7thonline significantly impacted a client’s business outcomes?
M.M.: Recently, one large conglomerate that we work with reported that by utilizing a wholesale account planning system, they were able to place their production orders a week earlier. This was due to better planning and led to a $1 cost reduction per garment from their supplier. This is a notable savings in the retail industry.
WWD: Sustainability is becoming increasingly important in every sector, including fashion and retail. How is 7thonline contributing to sustainability through its services?
M.M.: 7thonline offers advanced analytics and demand forecasting tools to help retailers and wholesalers align their stock levels with actual consumer demand, significantly reducing leftover inventory and cutting waste.
By minimizing surplus, we help prevent overproduction and reduce the likelihood of excess stock. Additionally, better planning leads to fewer last-minute shipments and lower energy consumption for both shipping and warehousing. This reduces costs and helps clients operate more sustainably.
WWD: How important is data security to 7thonline, especially when dealing with sensitive client information in the digital age?
M.M.: In our 25 years of business we have not had a data breach. Data security is extremely important to us, especially given the sensitive nature of client information and the current digital landscape. We are committed to safeguarding our clients’ data through robust security measures and industry best practices. Our cloud-native SaaS solutions are designed with advanced security protocols to protect against unauthorized access and data breaches. We are continuously updating our security frameworks to ensure that client information remains confidential and secure.
WWD: Can you describe any upcoming features or products that 7thonline is excited about rolling out?
L.T.: Here’s another reason why working with “best in class” industry leaders makes a difference. It allows us to develop products that meet their exact needs. For example, we are rolling out several new features designed to enhance both DTC and wholesale operations. For clients, we are expanding our item level planning that integrates sales planning with inventory management. This enhanced tool will provide detailed open-to-buy (OTB) and item level planning.
The benefit is that it will enable brands to track all key performance indicators (KPIs), including on-hand inventory, receipts, sales and transfers at both the distribution center and store level on a monthly basis. Another benefit is this provides real-time collaboration between the sales planning and inventory team so that there will be no more silos between planning and execution. To continue on the path, we are working with a major footwear brand to expand into production planning. This will help us to close the loop of the retail/inventory/planning/execution cycle.
WWD: What are some of the long-term goals for 7thonline, and what strategies are in place to achieve them?
M.M.: Looking ahead, 7thonline aims to eliminate inefficiencies caused by outdated tools like Excel. I like to call it “Excel Hell” because it’s frustrating, time consuming and full of inaccuracies. The biggest offense is that it creates data silos and slow real-time decision-making. As margins shrink, manual processes become unsustainable. The future is about delivering automated, end-to-end solutions that streamline operations and improve results, removing the need for manual inputting.
Known as the “science guys of the retail industry,” we’re advancing AI and machine learning through collaboration with leading clients. It’s no secret that AI is part of the future and is transforming buyers’ roles, enabling smarter, real-time adjustments to product assortments, especially for seasonal items. Studies show 60 percent of pre-season purchases are unprofitable due to decisions made without real-time data. By leveraging AI, retailers can respond to consumer behavior mid-season, improving profitability.
Our strategy for the future is to embrace AI and the crucial edge it provides by predicting trends early, reducing reliance on pre-season guesses, and enhancing margins, allowing retailers to reinvest in technology and stay ahead.
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