How Maximus saved 5mil € with inventory level optimisation

One of our retail clients came in with an issue of inventory level optimization across 37 warehouses. The client explained the issue of aging inventory in several warehouses, and the lack of stock in numerous others. We realized that the absence of a real-time decision engine, A.I. and its machine learning algorithms can create a false sense of demand and inefficient business processes.

If you are managing your inventory just by analytical software, your calculations can be off. For example, one of the most reliable retail ratios (margin percentage) may be lying to you, telling you that your margins are increasing, while the truth is that the higher ending inventory is falsely inflating the attained margin in the cost of goods sold formula. And the only thing remaining is to put the goods on sale, so your inventory doesn’t age further. Usually, the sale is intuitively calculated, which doesn’t offer the maximum return.

To bypass that issue, our Maximus A.I. has a way of preventing the increasing/aging inventory or “out of stock” issue by incorporating the real-time decision engine and machine learning algorithms. The real-time decision engine constantly updates the inventory information, it creates a coefficient of inventory turnover and predicts the future of your sold items, creating the most precise estimation of inventory needs. This results in an optimal number of goods in stock, and prevention of unnecessary inventory increase or decrease. If, however, the minimum error occurs there is no need for worry! Namely, the Maximus A.I. has a sales module, which predicts the most optimal inventory level and sale price based on machine learning algorithms. And the best thing about the machine learning algorithms is that they get smarter every year as they accumulate more data. The inventory then goes on sale by calculating the highest possible return for you. Finally, Maximus A.I. helps you make the most nimble, informed decision, and save millions in this world of accelerating AI-powered race to success. And every year it gets better at it!

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