Case study · Retail
An optical retail chain that predicts demand at each store with AI
Assortment and stock optimized
Demand forecasting with machine learning
Network data centralized
Where it all started
Dozens of stores, dozens of data islands
The challenge
Sales, stock and customer data trapped in each store, with no single view of the network.
Assortment and stock decided by intuition or by average, the same for stores with very different demand.
Stockouts (OOS) in some stores and immobilized overstock in others.
Reactive replenishment, with no anticipation of demand by store and SKU.
Without centralized data, AI and machine learning were out of reach.
What we proposed
First, centralize. Synchronize data from every store into a modern data platform on Azure, creating a single source of truth for the whole network. On top of that, machine learning models that predict demand by store and by SKU, capturing seasonality and the behavior of each point of sale, and optimize stock and assortment store by store. And a Power BI dashboard so the business can steer it.
The shift
From replenishing blind to anticipating demand store by store
Before
Sales and stock data isolated in each store
Assortment and stock decided by intuition or by average
Stockouts in some stores, immobilized excess in others
Reactive replenishment, with no anticipation
Now
A single source of truth with the whole network synchronized
ML models that predict demand by store and SKU
Assortment and stock optimized for each point of sale
Replenishment anticipating what each store is about to sell
The value generated
What changes when each store stops deciding blind
A single view of the network
Every store, synchronized into a single source of truth.
Demand anticipated by store and SKU
ML models predict what will sell at each point of sale before it happens.
Fewer stockouts, less excess
Stock adjusts to the real demand of each store, with less OOS and less capital tied up.
Assortment tailored to each store
An assortment based on store profile, not the same for every store.
Business in charge
A Power BI dashboard puts the forecast in the hands of whoever decides.
Ready for more AI
With the data centralized, the next AI use cases (recommendation, personalization) are already the next step.
What the client says
Retail Operations Management
Optical retail chain / Retail sector
F&Q
