2% Increase In Revenue For Meat Brand In the US With Unconstrained Demand Sensing

Case Summary

Fountain9 worked with one of the largest online raft meat brands in the USA.

AI-powered Kronoscope helped them tackle the challenge of the cycles of out-of-stock losses and excess inventory pile-up-related losses by enabling unconstrained demand sensing and inventory planning.

It factored in sales data and other demand drivers like focus SKUs, promotions, price changes, business goals, target margins, and seasonality to sense demand at the SKU, categories, and warehouse while excluding stockout events data. It then suggested inventory levels and dynamic safety stock norms by factoring in the Theory Of Constraints (TOC) logic at the warehouse levels for every SKU.

Business Challenges

• The Overall Impact on Revenues from Operational Complexities: The client was simultaneously facing the challenge of stockouts for some SKUs and overstocking other SKUs in their supply chain.
• Constrained Demand Prediction leading to Demand Cannibalization on similar SKUs and inventory Stockout: The existing demand prediction process was purely backward-looking in informing future planning.
• Volatility in Inventory Holding Levels Leading to a Reactive Supply Chain: Periods where demand was higher than sales, would lead to acute stock shortage, resulting in over-ordering from suppliers followed by an extended period of stockpiling.

Download the Case Study: 2% Increase In Revenue For Meat Brand In the US With Unconstrained Demand Sensing