How to Optimize Inventory in Stores

In June 2023 the international company-integrator Consulting for Retail, which is a part of Atriny Group,  successfully completed the project on the implementation of SymphonyAI Retail Forecast & Replenishment (F&R) solution in the Linella retail chain. And today the partners are ready to share the first results of painstaking but productive work.

Thus, a preliminary analysis of the results showed that the introduction of the system allowed Linella:

1. Optimize inventory in stores. The positive effect that the system had on inventory was noted. In some stores, the “excessive layer” of inventory was removed, which did not affect sales, while in others, on the contrary, the availability of items sold increased. This made it possible not only to maintain the previous pace of sales, and even increase in some categories, but also to free up part of the turnover funds and space in the store.
2. Reduce labor costs for the formation of orders. Delegating the function of creating an order to the system (the so-called auto-order) significantly reduced the time spent on order formation, freeing up the time of the Central Office (CO) staff and store managers to perform other priority tasks. The CO also notes a decrease in errors that occurred earlier due to the manual formation of orders. Auto-order adjustments, of course, are present, but do not exceed 10% and mainly fall on products participating in the Promo. 
3. Increase the availability of goods in retail outlets. A pessimistic approach to the quantity of goods ordered is often due to measures taken to reduce the number of write-offs of goods. This affects availability and, as a result, leads to an increase in lost sales. The introduction of forecasting made it possible to find the right balance between the real needs of buyers and business requirements. It remains to be calculated how much the change in the availability of goods increased sales, but this is only a formality.      
4. Increase control of the Central office over the processes that take place in retail outlets. Centralization of orders is one of the key tasks that allows the retailer to control their inventory and, as a result, influence turnover and availability. The system provides a variable forecast based on sales history and taking into account a large number of influencing factors, including promotional periods, which gives a clear picture of the needs of each store. 
5. Optimize deliveries taking into account the presentation stock. When placing an order, the system takes into account the required presentation stock of goods on the shelf until the next delivery, which allows you to avoid the so-called “product gaps” and improve the shopping experience. 

“Surpluses in goods or lost sales are money that could be invested in the development of a business, increasing its profitability. The use of modern inventory forecasting and management tools helps businesses optimize processes and effectively manage their inventory,” commented Alexander Esipenko, Business Development Manager at Consulting for Retail.

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Consulting For Retail – is an international consulting company focused on developing its own solutions and implementing solutions from Enterprise-level partners to automate business processes in retail, logistics, distribution, and manufacturing. The team implemented more than 220 projects in Ukraine, European and CIS countries and recently entered the US market. Actively develops new areas of activity, in particular, Cloudflare cyber security services, and Competera retail pricing automation tool.

Linella – leading grocery retailer in the Republic of Moldova. The supermarket format chain owned by Moldretail Group has about 200 stores throughout the country. Thanks to a wide range of products and a high level of service, Linella has earned the trust of millions of customers and occupies a third of the organized retail market in Moldova.