CPG companies increasingly struggle with inventory visibility as complex supply chains, fragmented warehouse management systems, and limited retailer data create critical gaps in CPG inventory visibility. These blind spots make it difficult to accurately track inventory levels, understand demand signals, and make informed production, warehousing, and replenishment decisions. Limited visibility can also contribute to inventory loss, excess inventory costs, and reduced supply chain efficiency, while distorting key operational and commercial performance metrics. By integrating fragmented data across warehouse and inventory management ecosystems and using advanced analytics for inventory estimation, businesses can restore transparency, improve inventory forecasting, and strengthen decision-making across the value chain.
Problem Statement
The client faced significant challenges with inventory estimation and inventory visibility due to inconsistent reporting across retail stores, with some locations updating daily while others reported weekly or monthly. This resulted in inaccurate inventory tracking, operational inefficiencies, and increased inventory loss, leading to frequent stock-outs and disruptions in inventory planning. While RFID was explored as a potential solution, its high implementation cost limited scalability. A scalable, data-driven approach to inventory forecasting and CPG inventory management became critical to restore accuracy, transparency, and control across the inventory ecosystem.
Impact
- Improved stockout detection by ~21% through enhanced inventory visibility
- Reduced inventory mismatches by ~55% through reliable stock estimation
- Infrastructure costs saved by $4.2M by eliminating the reliance on RFID setup
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