Home/Case Studies/Retailer Cuts Out-of-Stocks 50% with AI Replenishment
Retail

Retailer Cuts Out-of-Stocks 50% with AI Replenishment

Building an AI demand forecasting and auto-replenishment platform on Microsoft Fabric, dramatically improving on-shelf availability while reducing inventory.

Solution
AI Replenishment
Industry
Retail, Fmcg & Consumer Goods
Company Size

Project Overview

client
Multi-Format Retailer
industry
Retail, Fmcg & Consumer Goods
solution
AI Replenishment
technologies
Microsoft Fabric, Azure Machine Learning, Dynamics 365 Supply Chain, Power BI, Azure OpenAI
duration
6 Months
region
MENA

The Challenge

Replenishment was rule-based, leading to either out-of-stocks during demand surges or overstock during slowdowns.

  • 1Out-of-stock rate above 8% damaging customer experience
  • 2Manual replenishment overrides consuming planner capacity
  • 3Limited ability to react to promotion lifts or weather effects

Our Solution

CloudGate built an AI replenishment platform on Microsoft Fabric forecasting at store-SKU-day level with auto-replenishment to ERP.

  • Store-SKU-day demand forecasting with promotion and weather signals
  • Auto-replenishment with planner exception management
  • Planner copilot for promotion planning and what-if analysis

The Results

-50%
OUT-OF-STOCKS
-15%
INVENTORY LEVELS
+8%
LIKE-FOR-LIKE SALES
  • Standardized replenishment across 450+ stores

Technologies Used

Microsoft FabricAzure Machine LearningDynamics 365 Supply ChainPower BIAzure OpenAI

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