Inventory Forecasting Solution for Home Improvement Retailer

This case study details the implementation of an inventory forecasting solution by FIDELITONE for a national home improvement retailer. The primary objective was to enhance service levels and optimize inventory management, addressing the challenge of a first-time repair rate that was below 50%. The retailer aimed for a target of over 90% first-time repair success. The solution involved a two-phase approach, beginning with simulations to assess various stocking criteria and service levels. The results showed significant improvements, with the first-time repair rate exceeding 90% and a 37% reduction in inventory levels, leading to substantial cost savings of nearly $800,000 annually. The forecasting tool utilized 24 months of historical SKU data to accurately predict future demand, ensuring that inventory levels were aligned with service requirements. This case study illustrates the effectiveness of strategic inventory management in enhancing customer satisfaction and operational efficiency.