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Smart Inventory Restock System

Predictive restocking that cut stockouts by 85% and overstock waste by 30% for a retail chain.

–85%
Stockout Rate
–30%
Overstock Waste
2 hrs/wk
Buying Team Workload
+4pp
Gross Margin Improvement
!

The Challenge

A retail chain with 12 locations was managing inventory manually using spreadsheets and gut instinct. Stockouts were common — especially for fast-moving items — and overstock of slow-moving items was tying up capital. The buying team spent 15 hours per week on reorder decisions that were still frequently wrong.

Our Solution

We built a predictive restocking system that monitors real-time sales velocity across all locations, forecasts demand using 18 months of historical patterns, and automatically generates purchase orders when stock drops below dynamically calculated thresholds. The system factors in lead times, seasonal trends, and supplier constraints.

How It Works

01
Sales Monitored
Real-time velocity tracked across all 12 locations.
02
Demand Forecast
ML model predicts need using 18 months of history.
03
Threshold Calculated
Dynamic reorder points set per SKU per location.
04
PO Generated
Purchase orders auto-created when thresholds hit.
05
Team Reviews
Buyers spend 2 hrs/week approving, not calculating.

Before vs. After

Before
Manual processes & spreadsheets
Hours of repetitive work daily
Human errors and bottlenecks
Team burned out on low-value tasks
No visibility into real-time data
After NAGY Labs
SKU A
85%
SKU B
12%
SKU C
65%
SKU D
90%
SKU E
8%
SKU F
72%
–85%
Stockout rate reduction

The Outcome

Stockouts decreased by 85% within the first 60 days. Overstock waste dropped by 30%, freeing up working capital. The buying team's workload dropped from 15 hours per week to 2 hours of reviewing auto-generated orders. Gross margin improved by 4 percentage points.

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