A company in the retail sector decided to rely on aBCD Consulting with the goal of increasing sales and repositioning its operating margin.
The challenge
The company regularly faced the issue of not having the correct products on the shelf while simultaneously dealing with widespread overstock, negatively impacting both sales and warehouse inventory. The client’s needs were to:
Minimize stockouts.
Reduce excess inventory.
The solution
aBCD Consulting developed a project in two phases:
1. Assessment:
a thorough analysis of the current situation (AS IS) aimed at understanding:
The model, parameters, and tools used for demand forecasting.
The procurement process.
Inventory management.
2. Operational process optimization:
in the second phase, aBCD Consulting conducted a detailed review of the parameters used for demand forecasting. This was achieved through an in-depth analysis of historical demand, carried out specifically by product category, identifying trends, seasonality, and product specifics. Additionally, training sessions were organized for the personnel involved in the procurement processes to ensure a complete understanding of the updated system and the necessary operational changes. This phase also included an analysis of stock quality, aiming to identify effective strategies for managing overstock (promotions, events, returns, clearances) in close collaboration with the company’s commercial team.
Results
Thanks to aBCD Consulting’s intervention, the company achieved:
A 20% reduction in stockouts.
A repositioning of stock aligned with sales generated, reducing overstock by 25%.
reducing overstock by 25%.
A 5% increase in warehouse space availability.
The identification of criteria for autonomously repositioning procurement system parameters.
The consulting services for demand planning within the supply chain
made operational process optimization feasible, allowing the company to become more competitive in the global market.
