FlowIQ — Smart Inventory & Supply Chain AI
Turning demand uncertainty into a competitive advantage
Project Overview
A regional grocery chain with 38 stores was over-ordering perishables (creating waste) while simultaneously stocking out of high-velocity packaged goods on weekends. Their planning team worked from spreadsheets updated once a week. FlowIQ moved them to daily ML-driven replenishment orders with automatic supplier API integration — halving waste and eliminating empty-shelf incidents.
The Challenges
- 1
Perishable items have demand patterns driven by day-of-week, weather, local events, and promotions — linear models failed completely.
- 2
38 stores × 4,200 SKUs = 159,600 individual forecast series to run daily within a 2-hour overnight window.
- 3
Supplier lead times were inconsistently documented and frequently changed — the system needed to learn supplier reliability dynamically.
- 4
Store managers distrusted 'black box' AI orders; adoption required transparent, editable recommendations — not mandates.
Our Approach
We built a hierarchical forecasting system. At the top level, a global XGBoost model captures chain-wide trend signals. At the store × SKU level, we use an ensemble of Meta Prophet (for seasonality and holiday effects) and a lightweight LSTM (for promotion-driven spikes). External signals — weather API, local event calendars, and commodity price indices — are fused as exogenous features. The optimisation layer converts forecasts into replenishment orders using safety-stock formulas that account for supplier reliability scores (learned from 18 months of delivery variance data). The UI shows managers a ± confidence band and lets them override with a reason code — overrides feed back into model retraining.
Key Features & Metrics
159,600 individual SKU forecasts computed nightly in under 90 minutes
Weather, event, and promotion signals fused as exogenous model features
Dynamic safety-stock calculator with per-supplier reliability scoring
Manager override UI with reason codes — overrides loop back into training data
Automated purchase-order generation sent directly to supplier APIs
Waste dashboard tracking perishable write-offs vs. AI-recommended quantities
Results & Business Outcome
Holding costs dropped 45% across all 38 stores. Perishable write-off rate fell from 11.2% to 3.8%. Stockout incidents on top-200 SKUs reduced by 91%. The chain estimated $1.4 M in annualised savings in the first 6 months of operation.
Inventory is frozen cash. Every item sitting on a shelf too long — or missing from it — is a decision that could have been made better. ML makes better decisions, at scale, every single day.
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