Case Study: a leading grocery retailer reduces stockouts and inventory costs with Algonomy Order Right

A Leading Grocery Retailer in South East Asia Slashes Stockouts by 63% and Inventory Costs by $ 1.5 Million

A leading grocery retailer in Southeast Asia was struggling with chronic out-of-stock instances and high inventory costs due to its reliance on manual demand and replenishment planning. This inability to adapt to shifting demand and supply chain challenges led to lost sales and customer dissatisfaction. The retailer partnered with Algonomy to implement its Order Right solution, seeking an AI/ML-based system to optimize ordering and inventory.

Algonomy's Order Right solution utilized custom machine learning algorithms for hyperlocal demand forecasting and automated replenishment. This allowed the retailer to dynamically model supply chain dynamics and optimize inventory across all locations. As a result, Algonomy helped the client achieve a 63% reduction in out-of-stocks, a 17% reduction in inventory investments, and $1.5 million in cost savings.