Demand Planning team of an UAE based e-commerce were aspiring to improve their in-stock rate in non-food department. Their primary goal was to guarantee timely customer orders while preventing excess inventory that could lead to financial penalties. Throughout this endeavor, the client encountered several challenges. Timely delivery windows presented a logistical hurdle, requiring careful planning. Additionally, the client grappled with the inherent complexities of managing products with short shelf lives and maintaining competitive pricing.
Turning to innovative solutions, the client embraced TrueGradient’s inventory optimisation module. They harnessed the predictive power of TrueGradient to forecast product demand accurately and optimise inventory levels. Notably, the inclusion of discounts as influencing factors in these forecasts added an extra layer of precision. TrueGradient’s state of the art algorithms predicted the seasonality in the trends due to holidays and enabled reduced out of stock and excess inventory instances for the client.
As the implemented solution took hold, impressive outcomes materialized. Forecasts for popular products achieved a notable accuracy rate of 55%, marking a substantial enhancement. Beyond this, the client gained insights into products highly sensitive to price changes. This newfound knowledge empowered them to optimize special promotions, positioning them strategically in a competitive market.