Enhancing Inventory Visibility Through Smart Inventory Estimation

Solution Smart Inventory Estimation
Solution Smart Inventory Estimation
Industry CPG
Region US
Technology GCP
Context
CPG companies increasingly struggle with inventory shrinkage as complex supply chains, fragmented warehouse management systems, and limited retailer data create critical visibility gaps across management processes. These blind spots lead to revenue leakage, distorted demand signals, and inefficient production, warehousing, and replenishment decisions. Shrinkage also skews operational and commercial performance metrics, resulting in misaligned strategies, excess inventory costs, and reduced supply chain efficiency. By integrating fragmented data across warehouse management and inventory management ecosystems and detecting anomalies in real time, AI-driven shrinkage detection restores transparency, reduces losses, improves forecast accuracy, and strengthens decision-making across the value chain.
Problem Statement

The client faced major challenges with inventory estimation and inventory visibility due to inconsistent reporting across retail stores where some updated daily, others weekly or monthly. This led to inaccurate tracking, operational inefficiencies, and increased inventory loss, driving frequent stock-outs, and planning disruptions. RFID was explored but proved too costly. The need for a scalable, data-driven solution became critical to restore accuracy, transparency, and control across the inventory ecosystem. 

Impact

  • Improved stockout detection by ~21% through enhanced inventory visibility  
  • Reduced inventory mismatches by ~55% through reliable stock estimation  
  • Infrastructure costs saved by $4.2M by eliminating the reliance on RFID setup 

 

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