Streamlining Stock Transfer Orders with AI-Powered Replenishment System

Solution AI-Powered Replenishment System
Solution AI-Powered Replenishment System
Industry CPG
Region US
Technology Agentic AI
Context
CPG enterprises are under increasing pressure to manage unpredictable, last-minute retailer demands while ensuring seamless order fulfillment. Fluctuating consumer trends, fragmented data systems, and manual stock transfer order processes often cause delays, higher logistics costs, and inventory imbalances across warehouses. An AI-powered replenishment system can streamline stock transfer orders, improve forecast accuracy, and enable faster, data-driven fulfillment in an increasingly dynamic marketplace. 
Problem Statement

The client faced recurring challenges in managing Stock Transfer Orders (STOs) across regional warehouses due to frequent last-minute retailer demands. Their manual, spreadsheet- and SAP-driven process required human intervention at every step, from approvals to stock analysis, leaving no standardized, data-driven method to manage safety stock or transfer timing. This reactive approach led to inefficiencies, stockouts, and incomplete orders.

Impact

  • Reduced stockout incidents by ~30%. 
  • Reduced annual lost revenue from $18M to $7.8M. 
  • Improved OTIF (On-Time In-Full) from 98.5% to 99.2%. 
  • Brought down urgent transfer frequency from 6% of total orders to < 2%. 

 

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