SUCCESS STORY

Smart Inventory: Cutting Overstock by 25%

Aourix's predictive inventory management helped Company Y reduce excess stock, optimize supply chain costs, and boost efficiency.

Industry:Retail
Company Size:100-250 employees
Location:Canada
Company Y Case Study

The Challenge

Company Y, a multi-location retail business, was struggling with several inventory management challenges:

  • Excess Inventory: Consistently carrying 30% more inventory than needed, tying up capital and warehouse space.
  • Stockouts: Despite overstocking, they still experienced frequent stockouts of popular items, leading to lost sales.
  • Manual Forecasting: Relying on spreadsheets and gut feelings for demand forecasting, resulting in inaccurate predictions.
  • Supply Chain Inefficiencies: Lack of visibility across multiple locations led to inefficient transfers and emergency shipments.

These issues were costing Company Y an estimated $1.2 million annually in excess inventory costs, lost sales, and operational inefficiencies.

The Solution

Company Y implemented Aourix's AI-powered inventory management solution, which included:

AI-Driven Demand Forecasting

Aourix's machine learning algorithms analyzed historical sales data, seasonal trends, and external factors to predict demand with greater accuracy.

Multi-Location Inventory Optimization

The platform provided real-time visibility across all locations, optimizing stock levels at each site based on local demand patterns.

Automated Replenishment

Aourix automated the reordering process, generating purchase orders based on optimal reorder points and quantities.

Real-time Analytics Dashboard

Management gained access to comprehensive inventory analytics, including stock turnover rates, carrying costs, and stockout risks.

Implementation Process

1

Data Integration

Connected Aourix with Company Y's existing ERP and POS systems to import historical sales and inventory data.

2

AI Model Training

Trained Aourix's machine learning models on 24 months of historical data to recognize patterns and seasonal trends.

3

Pilot Program

Implemented the solution in two locations for a 60-day pilot program to validate results and refine the models.

4

Full Deployment

Rolled out the solution across all locations with customized training for inventory managers and staff.

The Results

25%
Reduction in Excess Inventory
32%
Decrease in Stockouts
$850K
Annual Cost Savings
15%
Increase in Inventory Turnover

Within nine months of full implementation, Company Y achieved significant improvements:

  • Reduced inventory levels by 25% while maintaining better product availability.
  • Decreased emergency shipments between locations by 78%.
  • Improved forecast accuracy from 65% to 92%.
  • Freed up 30% of warehouse space for new product lines.
"Aourix has revolutionized how we manage inventory. We're carrying less stock but have fewer stockouts—it seemed impossible before. The AI forecasting is remarkably accurate, and we now have complete visibility across all our locations. The ROI has been exceptional."— Michael Chen, Operations Director at Company Y

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