Lithuanian petrol station and convenience store operator Baltic Petroleum has centralised and automated assortment planning and replenishment on the Leafio AI Retail platform. The cloud-based solution from the Estonian software provider helped the company to reduce overstocks by 50 per cent and increase inventory turnover by 13 per cent within a year. Thanks to an expanded assortment and fewer out-of-stocks, retail sales increased by 62 per cent.
Before introduction of the Leafio software, store managers were responsible for the merchandise management processes. They were managing the replenishment and shelf layout. This often led to overstocking and different shelve layouts in the stores. This resulted in massive markdowns, especially for fresh items. In addition, managers did not have the necessary tools to track the relevant KPIs.
By implementing the new platform, Baltic Petroleum centralised and automated both ordering processes and planogram creation. This has relieved the company’s local employees. They can now concentrate on customer service and operational tasks.
Automated orders from head office
Four employees at the head office are now responsible for the ordering process. The software supports them with automated forecasts and replenishment orders. Using machine learning, it ensures that inventory and assortments are in line with demand and dynamically adapt to seasonal and local requirements.
The company places a particular focus on freshness. Special algorithms control ordering of fresh items. The software also ensures that current stock levels can always be monitored centrally and not just via monthly reporting, as was previously the case.
AI helps with shelf planning
The Leafio AI platform supports the entire process of space and shelf planning, from the creation of planograms to implementation and monitoring. AI-supported analysis tools use sales data to optimise shelf facings.
The solution offers comprehensive analysis tools for assortment planning and inventory management. For quick access and to facilitate strategic and operational decisions, the system visualises important key figures and indicators on a dashboard.
