Reduction of stock-on-hand by 38% through Demand Forecasting and
Feb 2019, Sydney
Increase stock availability through accurate demand planning in a dynamic
A large wholesale distributor with multiple warehouses in both the United States and Canada was looking for ways to improve its distribution supply chain. Remi AI’s Intelligent Inventory Platform was utilised to provide both demand forecasting and auto-replenishment solutions.
During the standard feasibility testing period, it was found that Remi AI’s suite of demand forecasting methods were sufficient in accuracy across 92% of the client’s product range and were setup to run at a SKU/Warehouse/Daily level.
Remi AI have delivered specific algorithmic approaches to low velocity products (products that sell less that one every week) that still allow our clients to see the expected sale velocity for these SKUs. For this client this was upward of 30% of all products being intelligently managed.
Remi AI also delivered auto-replenishment for 20% of all SKUs during the feasibility study. By implementing demand forecasting and auto-replenishment AI, preliminary results showed a reduction in stockouts by 24% while simultaneously reducing stock on hand by 38%. This latter value is expected to generate an increase in cash liquidity of >$5mill.
Reduced stock-on-hand: 38%
Reduced stock-outs: 24%
Increase in sales
Reduction in team workload and time spent reordering