Case Study: Australian Tech & Home Appliances Company reduces lost sales by 30% with Algo Intelligent Inventory Optimizer

How an Australian Tech & Home Appliances Brand Recovered Lost Sales

an australian tech and home appliances company faced a challenge in accurately estimating lost sales, particularly when customers substituted out-of-stock items. Their existing method did not account for stock levels at distribution centers, leading to flawed calculations. They turned to vendor Algo to address this using its Intelligent Inventory Optimizer (IIO) product.

Algo implemented IIO, which used a sophisticated algorithm to analyze sales data, customer substitution patterns, and DC stock levels to provide a precise lost-sales estimate. This solution enabled more informed decisions on product allocation and replenishment. As a result, the company achieved a 30% reduction in lost sales within the first six months, along with significant cost savings from minimized overstock and emergency replenishments.