Algorithmic Supply Chain Planning

Challenge​

Supply chain planning is more difficult than ever before​ because of changing shopper preferences, continuing e-commerce growth and unforeseen disruptions.​

For mature organizations, planning is more than just creating a unit plan for replenishment. It could include creating insights into capacity or upcoming labour requirements, providing inputs into joint planning with suppliers, or making longer-term planning decisions on network capability.​

Solution​

The Algorithmic Supply Chain Planning (ASCP) platform is an end-to-end solution for retail organizations. 

The platform has an intelligent forecasting engine covering standard statistical forecasting as well as artificial intelligence and machine learning for predicting the evolution of sales. The platform supports the decision-making processes of stores or distribution network replenishments based on the forecasts, and it provides predictions of impacts on the whole business. The platform enables setting specific managerial goals for on-shelf availability at the company, at a unique store or at the level of a group of stores.

Based on those targets, the platform can optimize inventory levels and order quantities for each individual product. This results in higher on-shelf availability (service level), improved forecast accuracy, lower stock keeping levels and reduced ordering effort. Accurate prediction of all KPI improvements can be simulated in advance. Lastly, our platform can provide a connection between strategic decisions, different constraints and realization on the operational level in the form of long- or medium-scenario planning. 

Benefit​

The five benefit areas are: revenue lift, margin improvement, On-Shelf Availability (OSA) improvement, inventory reduction and decrease of working capital.

Based on 100+ successful implementations, sales improve by  3-5%, margin improves by 2-7%, OSA improves by 99%+, inventory is reduced by 25% and working capital decreases by 20-30%.