Granarolo reduces inventory levels by more than 50% and cuts capital and lead time in half using machine learning
Summary:
Granarolo leverages machine learning technology from ToolsGroup. Using the SO99+ and Trade Promotion Forecasting (TPF) solutions, which use advanced machine learning analytics and deep learning, the company is able to plan demand for perishable products, optimise its inventory and accurately estimate future promotions based on historical data. Granarolo has managed to reduce its inventory levels and delivery time by 50% and increase its average forecast reliability by 5%, resulting in better customer service and fresh products offering.
Problem:
The dairy market is characterized by short shelf life products and strong promotional pressures. For instance, Granarolo runs thousands of promotions annually, producing 34,000 item–promotion forecasting combinations and causing demand peaks up to 30 times baseline sales. This environment requires optimized inventory management and the ability to provide immediate response times.
- Industry
- Food and Beverages
- Function
- Logistics
- Company Name
- Granarolo
- Vendors
- ToolsGroup
- AI Technologies
- Link to usecase
- link