Skip to main content

Predictive Inventory Management for QSRs

Business Problem Statement

  • For Quick Service Restaurants (QSRs), there is an impending need to continuously and effectively monitor current inventory status of key ingredients to take pre-emptive & corrective decisions on stock management in stores and timely inventory transfers in the supply chain
  • Several factors inhibit the efficient handling of in-store inventory including inaccurate demand forecasting, stock visibility, and lead time variability
  • Inaccurate forecasts can lead to stockouts or excess inventory, both of which negatively impact customer satisfaction and increase costs

Solution Overview

  • The solution leverages Pega Customer Decision Hub to predict near-term sales for all SKUs and ingredients at each store and offers next-best decisions such as Intra-Store Allocation, Store-to-Store Transfer, Returns Disposition etc. based on Over/Under Inventory calculations
  • The solution factors in the variability of key predictors influencing sales such as seasonality, promotions, store location, weather etc.
  • The solution will help:

Identify profitable stock transfer opportunities

Minimize out-of-stock and subsequent lost sales by capitalizing on revenue opportunities

Rebuild product assortment across your business

Recalibrate promotions leading to improvised product planning

Predictive Inventory Management for QSRs

Solution Architecture

Predictive Inventory Management for QSRs

Business Benefits

  • Reduction of Inventory carrying costs while maintaining healthy in-stock levels across stores
  • Improved Cash Conversion cycles with timely replenishments and identification of intra-store transfers
  • Improved revenue due to minimised lost sales and stockouts
  • Optimized Promotion Recalibrations like BOGO, Percent Off, Dollar Off etc. based on Under/Over Inventory calculations
  • Intelligent Returns Disposition for timely disposal, reduced inventory waste and reduced overhead costs
  • Re-Build Product Assortment: Avoid being left with fringe quantities and inventory distortion across your stores & channels
Let’s engage