Case Study: a global top 20 tyre manufacturer reduces stockouts and saves $7 million with The Smart Cube

Merchandising analytics helped global tyre company with inventory planning across 2,200 stores and save $7 million

The Smart Cube worked with a global top 20 tyre manufacturer that was struggling with frequent inventory stockouts across its network of over 2,200 stores, despite having no prior capacity issues. The client's main challenge was to optimize its inventory planning process to completely eliminate these costly stockout scenarios.

To solve this, The Smart Cube implemented advanced analytics, using Stochastic Deterministic Regression and Linear Programming Optimisation models to forecast demand. They developed a web dashboard for inventory planning and provided confidence intervals for their forecasts. This solution enabled the client to better manage SKU-level assortment, resulting in $7 million in savings by eliminating stockouts.