Case Study: Powering inventory and markdown optimization for leading fashion & home goods retailers across the globe

Background: Global retailer, complex needs

One of the top retail groups across Europe and Asia operates an extensive network of stores under globally recognized fashion and home goods brands. With franchise rights in over 20 countries, the company serves customers across the world—offering a diverse selection of high-quality products, spanning womenswear, menswear, childrenswear, beauty, and home goods.

Challenge: Balancing scale with precision 

When managing multiple brands across several countries, it is imperative to find a flexible, yet powerful system for integral parts of the business. Strategic inventory planning and optimized pricing are crucial for retailers aiming to balance customer satisfaction, inventory costs and financial growth. However, outmoded inventory management systems and processes can hinder informed decisions regarding planning and pricing, driving forward-thinking retailers to explore AI-powered solutions.

To enhance inventory planning, the company sought a data-driven optimization solution that would ensure the right products were available at the right place and time—preventing stockouts and excess inventory that can be flexible enough to support multiple brands, categories and countries. Additionally, they needed an intelligent markdown optimization strategy to minimize markdown loss, maximize sales, and strengthen their bottom line.

Solution: Optimizing with AI-driven planning

After careful evaluation of solution providers, the retailer selected invent.ai for its intelligent AI-decisioning technology and its proven track record of helping global retailers revolutionize their inventory and pricing capabilities across many retail verticals including apparel, home goods and footwear.

A senior merchandising leader at the company shared, “After a rigorous selection process, we zeroed in on invent.ai’s tailor-fit inventory and markdown optimization solutions. We are delighted to have an opportunity to benefit from the advanced scientific expertise, self-learning technology, and fashion retail industry experience that invent.ai brings to the table.”

The retailer implemented the AI-Decisioning Platform, focusing on:

• Allocation optimization
  Invent.ai’s Allocation Optimization solution dynamically positions inventory across stores and distribution centers (DCs) based on real-time customer demand. AI accurately predicts demand at the highly granular SKU-store level, then sends the right products in the right amounts to each location. 
• Replenishment optimization
  The AI-driven Replenishment solution leveraged intelligent demand forecasting, historical and real-time sales data, and automated replenishment runs to optimize stock levels across stores. The solution determines optimal reorder points based on demand patterns, seasonality, and capacity constraints.
• Transfers optimization
  With invent.ai’s Transfers Optimization, the retailer can now make predictive, size-based stock transfers between stores. AI runs dynamic, automated scenarios to determine if and when to move products from low-demand locations to high-demand ones, factoring in costs, lead times, and demand probabilities to identify the most beneficial inventory transfers.
• Markdown optimization
  The Markdown Optimization solution enhances markdown management with AI-driven forecasts, real-time simulations, and tailored strategies for different products, regions and stores. AI automatically determines the optimal depth, timing and frequency for every markdown, considering price elasticity, competitor prices, seasonality and special days. 

With its platform designed for rapid implementation, invent.ai deployed the solutions in just three months and quickly delivered measurable results.

Results: Efficiency, accuracy and profit

With invent.ai, the retailer has significantly enhanced supply chain efficiency and financial performance for the retailer. AI-powered allocation, replenishment and transfer decisions have minimized lost sales, improved inventory efficiency and ensured optimal product availability. Seasonal peaks are now managed with precision, preventing both overstock and shortages—even in complex product categories and sizing.

Additionally, invent.ai has transformed the company's markdown strategies. The retailer has achieved lower markdown losses, increased sell-through, higher margins and enhanced visibility into the end-of-season sales and inventory levels. With AI-driven pricing strategy and category management, the company can make informed decisions that maximize sales while maintaining competitive pricing across all customer segments.

Notably, invent.ai provides ongoing support through its unique Hub Model. A dedicated team of experts collaborates with the retailer’s inventory management team, continuously refining optimization strategies and tailoring the solution to evolving business needs.

Ultimately, with invent.ai, the company has gained a cohesive, AI-backed inventory management process that drives revenue growth, customer satisfaction and long-term business success. In the future, the retailer plans to expand its successful partnership with invent.ai and deploy its solutions for their brand in other territories.