How a Global Consumer Electronics Brand Transformed Their Supply Chain Through Digital Transformation

Supply chain challenges

The client faced several critical challenges that hindered their supply chain efficiency and limited their ability to respond to market demands effectively.

  • Disparate and Siloed Data

    The client’s supply chain was hampered by siloed data stored in spreadsheets, leading to conflicting viewpoints and inefficient decision-making. This lack of unified data visibility significantly limited their ability to manage inventory and forecast demand effectively.

  • Manual and Inefficient Processes

    The client relied heavily on manual processes for inventory and demand planning, creating bottlenecks and inefficiencies in their operations. These cumbersome methods were not scalable and hindered the company’s ability to react swiftly to changing market demands.

  • Limited Supply Chain Visibility

    The client struggled with limited visibility into their supply chain, affecting their ability to align operations with consumer demand. This lack of visibility led to issues with inventory management, including out-of-stock situations and missed sales opportunities.

  • High Forecast Error Rates

    The company’s reliance on outdated forecasting methods resulted in high forecast error rates. This inaccuracy in predicting demand not only led to excess inventory but also missed opportunities to invest in high-velocity products, thereby affecting overall profitability.

Algo’s solution

To address their challenges, Algo implemented a suite of advanced solutions that transformed the client’s supply chain operations and enhanced their overall efficiency.

  • Unifying Siloed Information

    Algo centralized the client’s siloed data by integrating it into a unified system, replacing manual spreadsheets with an advanced analytics platform. This move allowed for better decision-making by providing clear, real-time insights across the entire supply chain.

  • Automation of Manual Processes

    Algo automated the client’s inventory and demand planning processes using its AI-driven forecasting engine. This automation reduced the time spent on these tasks by 80% and significantly improved the scalability of the client’s operations.

  • Enhanced Supply Chain Visibility

    Algo implemented a one-stop dashboard that provided comprehensive visibility into the supply chain, from the retailer level down to individual stores. This enhanced visibility allowed the client to make more informed decisions, optimizing inventory allocation and maximizing sales.

  • Improved Forecast Accuracy

    By employing Algo’s advanced forecasting methodology, the client was able to reduce their forecast error (MAPE) by 10%. This improvement helped them better identify demand anomalies and allocate resources more efficiently, leading to increased capital for high-velocity products.

The results

The client experienced significant improvements in revenue, inventory management, and decision-making capabilities.

They identified over $500k in sales opportunities in a single week by optimizing inventory allocation, reduced out-of-stock situations, and minimized excess inventory. The integration of advanced analytics and real-time data enabled faster, more accurate decisions, positioning the client for sustained growth and greater operational efficiency.

Transform your supply chain with real-time insights and automation. Partner with Algo today.