AI Forecasting Drives Optimum Inventory Levels and a Streamlined Supply Chain for Logistics Firm

Why AI-Driven Forecasting?

AI-driven forecasting transforms raw operational data into accurate predictions that help businesses stay ahead of demand, cut stockouts, and reduce excess inventory. By aligning procurement with actual supplier lead times and automating workflows, it enables decision-making to shift from reactive to proactive, unlocking efficiency, lowering costs, and ensuring that customers always receive what they need, on time.

The Client

The client was a UK-based logistics and distribution company with warehouses in multiple regions, supplying a variety of products from fast-moving retail items to slower-moving seasonal stock. Their network manages thousands of SKUs, transporting products to large retail chains, smaller wholesalers, and online sellers.

The Challenges

Inability to keep enough stock in the warehouse was impacting business growth from the perspective of customer satisfaction and lost sales.
Reactive and not proactive demand forecasting resulted in stockouts and excess inventory.
Lack of clear insights into supplier lead times impacted optimal procurement.
Largely manual order processing impacted other ancillary processes, especially during busy periods.

The Solution

AI-driven forecasting system harnesses historical sales, demand, and inventory data (across 2 years).
Streamlined SKUs, trimmed slow sellers, and focus on fast-selling products.
Automated triggers for purchase orders when stock hits certain thresholds.
Supplier lead time tracking feeds into the process, so ordering matches real-world delivery patterns.
Smoother workflows to cut delays and get orders moving faster.

LEVERAGE AI FOR DECISION MAKING

The Outcome

40% drop in stockouts and 25% reduction in excess inventory within nine months.

30% cut in holding costs in the first year, unlocking cash for strategic investments.

45% faster order cycle times through reduced manual handling.

35% improvement in procurement efficiency, slashing emergency orders and last-minute freight costs.

Technology Stack

Oracle Cloud Infrastructure (OCI) Oracle Autonomous Data Warehouse Oracle Machine Learning (OML) Oracle Data Integrator Oracle Analytics Cloud / Oracle Fusion Data Intelligence Oracle Identity Cloud Service / Identity Access Management Oracle Logging and Monitoring Oracle Application Performance Monitoring