Case Study: a leading US automotive parts retailer boosts merchandising and store performance with The Smart Cube

Advanced analytics helps leading US automotive parts retailer improve merchandising and store performance

A leading US automotive parts retailer faced a significant challenge with misaligned stock supply and demand across its 2,000 stores. This problem resulted in 25-70% of demand being filled through costly external vendors, severely impacting profit margins. The retailer engaged The Smart Cube to address these merchandising and inventory issues.

Using predictive analytics, The Smart Cube implemented a solution involving hierarchical mixed-effects models to forecast demand and optimization algorithms to align product assortment. This approach identified over $11 million in potential annual savings by reducing reliance on external vendors and preventing the over-stocking of products by as much as ten times the sales volume. The Smart Cube's solution provided the client's teams with actionable insights for procurement, merchandising, and overall business strategy.