Retail Inventory Management
Impact Analytics enabled a jewelry chain to generate $28 million in EBITDA through Inventory Management
The client is a billion-dollar fast fashion jewelry chain that operates approximately 2000 stores selling about 3000 SKUs each. The inventory management process from inventory forecasting, pricing, cost of storing inventory, demand forecasting to inventory status, etc. was becoming extraordinarily unwieldy and heuristic.
Solving inventory management comes down to getting the 5R’s right – the desired product should be available at the ‘right time’ in the ‘right place,’ and the customers should be able to get the product in the ‘right quantity’ at the ‘right price’ and the ‘right quality.’
An application that can read and analyze past data, understand the demand for various products and can forecast the right amount was something that would quickly solve the problem. Impact Analytics’s Automated Inventory Replenisher (AIr) was the perfect solution for the client. It enabled the decision makers to
- Accurately forecast demand at a granular (SKU) level for each store/outlet using advanced statistical and AI-based models
- Fine tune their decisions and forecast according to the business requirement and needs
AIr with its intuitive and easy interface helped the decision makers visualize, validate and adjust the demand forecasts. It also lets the user download customizable reports as well as provide multiple options to visualize the results as per the context and situation.
Impact Analytics’ AIr application empowered the client with the following business-critical and value-generating outcomes:
Impact Analytics provided a holistic solution to the client through the deployment of AIr. It solved multiple issues plaguing the inventory management process and helped them save millions, thereby positively impacting their balance sheet. The client saved $28 million by implementing our Automated Inventory Replenisher solution in the last financial year (2017).