Inventory optimization for FMCG
Overview
The client’s earlier approach of centralized inventory planning missed out geographical insights of demand thus incurring sale loss & customer churn.
The objective was to come-up with a framework that allows planning for assortment and customer offers at a localized level, hence improving customer retention and thereby revenue.
Solution
- The process involves systematic analysis of data at various levels like customer, product and geography level information of sales patterns.
- Store/City level insights helped in better planning of assortment and combo offerings suited to local demand.
- Created reporting framework to understand weekly and monthly purchases at customer and product level.
- Geography level analysis helped to give a view of location wise top selling products in different months
- Product category heatmap helped to analyze MoM performance across different geographies & timeframes.
- Combining product and geography data with customers, we categorize the customers in different tiers and identified loyal base.
Impact
Our localized and seasonal recommendations resulted into ~20% increase in combo order count and improved inventory planning.
Improved the personalization experience of loyal customers
Increased customer retention and new customers count.
