Case Studies / Retail

Retail Chain Eliminates Stockouts While Reducing Inventory

How a national retail chain achieved 98.5% service levels while reducing inventory carrying costs by 18% across 200+ stores, freeing up $85M in working capital.

Industry: Retail
Company Size: $1.2B Revenue
Implementation: 4 months
Solution: GoodStock Pro

The Challenge

This national retail chain was struggling with the classic retail inventory dilemma: maintaining high service levels while controlling carrying costs. With 200+ stores across 15 states, 25,000 SKUs, and complex seasonal demand patterns, they faced significant operational challenges.

Key Problems:

  • Frequent stockouts: 12% stockout rate was causing lost sales and customer dissatisfaction
  • Excess inventory: Overstocking led to markdowns and reduced margins
  • Inconsistent performance: Service levels varied dramatically across stores
  • Manual planning: Store-level inventory decisions were often based on intuition rather than data
  • Seasonal volatility: Difficulty predicting and managing seasonal demand spikes
"We were constantly firefighting between stockouts and excess inventory. Our store managers were frustrated, customers were disappointed, and we were losing money on both ends." VP of Supply Chain Operations
12%
Stockout Rate
25,000
SKUs
200+
Stores
91.2%
Service Level

The Solution

The retail chain selected GoodStock Pro for its advanced demand forecasting capabilities, multi-location optimization, and proven success with retail operations.

1

Data Integration & Analysis (Month 1-2)

Connected GoodStock Pro to existing POS, inventory, and forecasting systems across all 200+ stores. Analyzed historical sales patterns, seasonal trends, and store-specific demand characteristics.

2

Model Configuration (Month 2-3)

Configured AI-powered demand forecasting models that account for local demographics, seasonal patterns, and promotional impacts. Set up automated replenishment rules optimized for retail operations.

3

Rollout & Optimization (Month 3-4)

Phased rollout across store clusters with continuous monitoring and adjustment. Comprehensive training for store managers and regional operations teams.

Key Features Implemented:

📊 Store-Level Optimization

Individual optimization models for each store based on local demand patterns, demographics, and seasonal variations.

🔄 Automated Replenishment

Intelligent reorder point calculations that automatically adjust based on sales velocity and lead times.

📈 Demand Forecasting

Advanced algorithms that predict demand spikes from promotions, seasonality, and local events.

âš¡ Real-Time Analytics

Comprehensive dashboards providing instant visibility into inventory performance across all stores.

The Results

The implementation delivered exceptional results, achieving the seemingly impossible: higher service levels with lower inventory costs.

98.5%
Service Level Achievement
Up from 91.2% baseline
-18%
Inventory Carrying Costs
Significant cost reduction
$85M
Working Capital Freed
Cash released from inventory
-67%
Stockout Rate
From 12% to 4%

Detailed Impact Analysis:

Financial Impact

  • $85M reduction in inventory value
  • $18M annual carrying cost savings
  • Improved cash flow and working capital
  • ROI achieved in 3.8 months

Customer Impact

  • 98.5% service level achievement
  • 67% reduction in stockouts
  • Improved customer satisfaction scores
  • Reduced lost sales from stockouts

Operational Impact

  • Streamlined store operations
  • Reduced manual planning time
  • Better inventory turnover rates
  • Improved regional consistency
"GoodStock Pro solved our impossible dilemma. We achieved 98.5% service levels while reducing carrying costs by 18%. Our store managers finally have the tools they need to make data-driven inventory decisions, and our customers are happier than ever."
VP of Supply Chain Operations National Retail Chain $1.2B Revenue, 200+ Stores

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