Client
A mid-sized FMCG company based in New York, specializing in the distribution of consumer goods across regional and national markets. With a diverse product range, the client supplies their procured FMCG products to supermarkets, local retailers, and e-commerce platforms. Their commitment to quality and customer satisfaction has earned them a strong reputation in their industry.
Problem
The client sources fast-moving consumer goods from multiple manufacturers, but without a technology-driven ordering system, they frequently overstocked some products while under-ordering others.
This imbalance led to frequent stock shortages for high-demand items, causing missed sales opportunities, while excess stock of other products piled up in warehouses.
Since many of these products were perishable, those that remained unsold for too long became unsellable, resulting in direct financial losses. Additionally, to urgently restock out-of-stock items, the client had to place last-minute orders with higher procurement and express shipping costs, significantly increasing logistics and inventory expenses.
These inefficiencies not only eroded profitability but also disrupted their ability to maintain a steady and cost-effective supply chain
Research
To identify the root cause of the client’s challenges, Genesis NGN assembled a team of experts for in-depth research. They visited different warehouses of the client and found that there was no system in place to accurately predict the number of orders expected from different markets or clients in the coming weeks. Additionally, different departments handled different markets or clients separately, each maintaining its own data without proper coordination.
This lack of communication and data sharing led to major inefficiencies. Without a centralized system to track market trends and customer demand, the client faced inventory issues, frequent stock shortages, and overstocking, which increased costs and led to lost sales. Some perishable products remained in warehouses for too long, eventually expiring and becoming unsellable.
To address these challenges, Genesis NGN proposed the development of an AI-powered Predictive Ordering and Logistics System.
Solution
The AI-powered Predictive Ordering and Logistics System developed by the Genesis NGN team incorporated the latest technology and AI-driven features.
It was designed as a centralized platform accessible to all departments, allowing them to view real-time data, including current stock levels of various products. The system featured:
- Predictive Order Planning: AI analyzed past sales data and demand patterns to forecast upcoming orders, ensuring the right stock levels.
- Automated Procurement Engine: Generated accurate order recommendations, adjusting in real time based on sales trends and inventory movement.
- Centralized Data Intelligence: Integrated data from different departments, enabling synchronized decision-making and eliminating communication gaps.
- Expiry Management Module: Tracked perishable items and alerted teams about approaching expiration dates to prevent losses.
- AI-Optimized Logistics Scheduling: Planned replenishment cycles efficiently, reducing the need for costly last-minute shipments.
By leveraging real-time AI insights, the system enhanced order accuracy, minimized waste, and improved supply chain efficiency for the client.
Benefits
- Optimized Inventory Management: Reduced overstocking and stock shortages with accurate demand forecasting.
- Lower Procurement Costs: Minimized last-minute, high-cost orders through AI-driven order planning.
- Reduced Waste: Expiry management ensured perishable products were sold before expiration.
- Improved Supply Chain Efficiency: AI-optimized logistics streamlined replenishment cycles and reduced delays.
- Better Coordination: Centralized data improved communication between departments, enabling smarter decision-making.
- Increased Profitability: Reduced operational inefficiencies led to higher sales and cost savings.
