European Retail Megacorp Optimizes its 15000+ SKU Mix to Boost Profit Margins by €30 Million

AI-Powered Product Mix Optimization to Reduce Inventory and Accelerate Flow of Goods

The client is a leading European Retail Giant that has been operating for approximately 65 years. It was one of the first retailers in the region to pioneer the transition to organic products and online shopping.

Some of the major problems the client faced were:

• Inability to acquire a data-driven view of demand
• Eliminate low-value SKUs & optimize the allocation and replenishment
• Reduce material, operational and logistics costs

In this case study, we explain how the European Retailer was able to:

• Deploy AI-Powered Demand Sensing that was able to monitor and analyze shifting demand patterns at a SKU level in real time, allowing for accurate estimation of demand.
• Reduce logistics costs once the SKUs were optimized for demand