Stockouts -71%, £95k annual saving
Stockouts cost roughly £12k/month in lost sales across 14 stores. Manual ordering relied on a buyer's feel for demand, and supplier lead times were unpredictable. Excess stock on slow movers tied up another £40k of working capital.
POS data, supplier lead-time history, and an external demand-signal feed (weather, events, calendar) feed a forecasting model that orders 3 weeks ahead of need per SKU per store. Buyers approve in batches; the system handles the routine 80%.
Stockouts fell 71%. Excess stock on slow movers fell 38%, releasing £52k of working capital. Combined annual saving in year 1: £95k against a build cost recouped inside 9 weeks.
The forecast accuracy is what surprised us most. We expected automation; we got a buyer that out-performs ours on the routine SKUs.
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