Financial Optimization of Auto-Part Purchasing and Replenishment

This case study details the collaboration between Tokić, a leading auto-parts retailer in Croatia, and Lokad, a data science company specializing in supply chain optimization. The objective of the partnership was to address Tokić's complex supply chain challenges, particularly in procurement, replenishment, and inventory management. Tokić faced industry-specific obstacles, including the complexity of managing over 100,000 distinct vehicles and 1,000,000 parts, alongside company-specific challenges such as a large retail network and the need to maintain service levels amid economic changes. The solution provided by Lokad involved reshaping store replenishment decisions in real-time, synchronizing purchase orders, and improving forecasting accuracy. The implementation resulted in significant financial gains, including controlled inventory costs during a major assortment update, increased availability of fast-moving items, and improved warehouse-to-store efficiency. The partnership is set to expand into Tokić's Slovenian market, further enhancing their operational capabilities.