Success Stories

Reduced inventory costs through demand Planning & Inventory Optimization

About the client

A Global CPG Company based out of US

Problems:

  • Accumulation at a large number of Distribution points leading to high inventory level concerning sales
  • Need to minimize inventory holding at SKU level & distribution costs
  • Maximize demand fulfillment rates and minimize stock-out situations at retail outlets

Solution:

  • Innover developed statistical models (time series, multi-level/hierarchical models, etc.) for demand Planning & Inventory Optimization, future sales predictions for all SKUs at retailer levels by analyzing past sales, warehouse SKUs and order history.
  • Identified similar products for newly introduced SKUs from consumer positioning perspective and developed forecast models to predict launch sales.
  • Integrated sales forecasts with warehouse SKU information, order information and business inputs on expected sales spikes to arrive at orders for all SKUs, at retailer levels
  • Solved multi-objective optimization problem of inventory management by applying genetic algorithm-driven Particle Swarm Optimization in an Agent-Based Modeling (ABM) framework

Impact Delivered:

USD 7.3M

reduction in inventory costs in one year.

Partners

Partnership with Adobe | Our Partners
Partnership with Argos Labs | Our Partners
Partnership with Arctic Wolf | Our Partners
Partnership with Baxter Planning | Our Partners
Partnership with Blitzz | Our Partners
Partnership with BlueLeap | Our Partners
Partnership with Conversight.ai | Our Partners
Partnership with Field Nation | Our Partners
Partnership with Microsoft | Our Partners
Partnership with Rank | Our Partners
Partnership with RedLambda | Our Partners
Partnership with Vertex | Our Partners

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