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Intelligent Inventory Optimization for a Multi-Channel Retail Business

Inventory Management System for Pioneer Goods & Supply, a multipurpose shop chain, to streamline operations, automate processes, and improve control over goods, orders, and stores.A leading retail brand with operations across online and offline channels sought to optimize its inventory planning and replenishment process to improve product availability while reducing overstocking and wastage.

Time

5 Months

Team

6 Members

Platforms

Web, ERP, POS Systems

Type

AI-Powered Inventory Optimization

Industry

Retail (Fashion & Lifestyle)

IDEA

Optimizing Retail Inventory with AI

This retail brand, operating across both physical stores and e-commerce platforms, struggled with inconsistent inventory levels, stockouts, and excess inventory. Our solution implemented an AI-powered inventory optimization system to automate demand forecasting, streamline stock allocation, and ensure better product availability across all channels.

CHALLENGE

The client was experiencing several inventory-related bottlenecks

  • Inconsistent inventory levels across channels, causing frequent stockouts and overstock situations
  • Manual demand forecasting leads to inaccurate purchase planning and excess markdowns
  • Lack of visibility into real-time demand patterns across channels, causing frequent stockouts and overstock situations
  • High carrying costs due to slow-moving stock and poor allocation between warehouses and stores
  • Difficulty scaling inventory decisions for new markets and channels
Objective:Build an AI-powered inventory optimization system that provides accurate, dynamic forecasting and intelligent stock allocation across all channels.

SOLUTION

AI engine for demand forecasting, stock optimization, and inventory visibility.

  • Machine learning models trained on historical sales, seasonal trends, regional preferences, and external factors (weather, promotions, holidays)
  • Real-time demand sensing using e-commerce activity, in-store POS data, and web analytics
  • SKU-level forecasting with automated replenishment suggestions based on store-specific needs
  • Dynamic safety stock and reorder point calculation to reduce stockouts without overstocking
  • Channel-aware optimization to balance inventory between physical stores, warehouses, and online channels
  • Visual dashboards for inventory managers to monitor performance and act on low-stock/high-demand alerts

What they said is all that
matters to us!

VP of Supply Chain

Multi-Channel Retail Brand

Our biggest retail bottleneck was inventory — either too much or too little. This AI system gave us the precision we were missing. It’s data-backed, adaptive, and has made our operations far leaner and smarter.

Priority Features

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AI-Powered Forecasting

Accurate demand predictions at the SKU-location level, driving intelligent stock replenishment.

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Real-Time Demand Sensing

Adjusts inventory dynamically based on e-commerce activity, POS data, and external factors.

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SKU-Level Stock Allocation

Optimizes replenishment for each store and warehouse based on localized demand.

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Channel-Aware Optimization

Balances stock distribution seamlessly between online and offline channels.

Tech Stack

RESULTS (Within 6 Months)

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32% reduction in stockouts across online and offline stores

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26% decrease in excess inventory, freeing up warehouse space and reducing markdown losses

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21% improvement in forecast accuracy at SKU-location level

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15% boost in sell-through rate, especially during seasonal campaigns

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Greater cross-channel consistency, resulting in improved customer satisfaction and retention

Mail Us

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sales@madforcoding.com

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