AI-Powered Inventory Optimization: Turn Your Supply Chain into a Competitive Advantage
Stop losing money on stockouts and overstock. We build custom AI solutions that predict demand, automate reordering, and optimize inventory levels across your entire network.
Optimize Your Inventory NowTrusted by Industry Leaders and Fast-Growing Startups
Stop Reacting, Start Predicting
In today's volatile market, manual spreadsheets and legacy systems can't keep up. The result? Lost sales from stockouts and wasted capital tied up in excess inventory. Supply chain leaders are now leveraging Artificial Intelligence to move from reactive to predictive operations. Our AI-driven inventory optimization solutions provide the clarity and automation needed to balance supply and demand perfectly, ensuring you have the right product, in the right place, at the right time, every time.
Our AI-Powered Inventory Optimization Services
We offer a comprehensive suite of AI solutions designed to address every facet of inventory management. Our services are not one-size-fits-all; we tailor each solution to your unique business logic, supply chain complexity, and strategic goals, ensuring measurable impact and a clear return on investment.
AI-Powered Demand Forecasting
Move beyond simple historical averages. Our machine learning models analyze historical sales, seasonality, promotions, market trends, and external factors to predict future demand with up to 95% accuracy.
- Reduce forecast errors by up to 50%.
- Incorporate external data like weather, economic indicators, and social media trends.
- Generate granular forecasts at the SKU, location, and channel level.
New Product Introduction (NPI) Forecasting
Launching new products is a high-stakes gamble. Our AI uses attribute-based modeling and look-alike analysis from existing products to create reliable initial forecasts, minimizing the risk of overstock or stockouts.
- Leverage data from similar products to predict demand for new items.
- Model various launch scenarios to determine optimal initial inventory levels.
- Rapidly adjust forecasts as initial sales data becomes available.
Promotion & Event Uplift Modeling
Accurately predict the sales lift from marketing campaigns, promotions, and seasonal events. Our models isolate the impact of promotional activities to ensure you stock the right amount of inventory to meet the surge in demand without creating post-event overstock.
- Quantify the ROI of marketing spend on inventory levels.
- Prevent stockouts during critical sales periods.
- Optimize promotion strategies for maximum profitability.
Long-Tail SKU Management
Managing slow-moving or intermittent demand items is a classic inventory challenge. Our probabilistic forecasting models are specifically designed to handle sparse data, providing better inventory policies for your long-tail products to improve service levels without tying up capital.
- Optimize safety stock for items with unpredictable demand.
- Improve service levels for a wider range of products.
- Automate inventory policies for thousands of slow-moving SKUs.
Automated Replenishment & Reordering
Our system translates accurate forecasts into intelligent, automated purchase orders. It calculates optimal order quantities and reorder points based on lead times, service level targets, and cost constraints, freeing your team from manual PO creation.
- Eliminate manual ordering processes and reduce human error.
- Maintain target service levels (e.g., 99.5%) automatically.
- Dynamically adjust reorder points based on changing demand and supply variables.
Multi-Echelon Inventory Optimization (MEIO)
Optimize inventory levels across your entire supply chain network, from central distribution centers to regional warehouses and retail stores. MEIO determines the right place to hold stock to minimize total costs while maximizing availability.
- Reduce overall network inventory by 15-30%.
- Improve system-wide product availability and fill rates.
- Balance inventory strategically across different tiers of your supply chain.
Safety Stock Optimization
Stop using simplistic rules-of-thumb for safety stock. Our AI calculates dynamic safety stock levels for every SKU-location combination, balancing the cost of holding inventory against the cost of a stockout to protect against demand and supply volatility.
- Reduce safety stock holdings while improving or maintaining service levels.
- Account for both demand forecast errors and lead time variability.
- Free up working capital by eliminating unnecessary buffer stock.
Obsolete & Excess Stock Reduction
Proactively identify slow-moving and obsolete inventory (SLOB). Our AI flags at-risk stock and recommends optimal strategies, such as targeted promotions, inter-branch transfers, or liquidation, to recover value before it becomes a write-off.
- Receive early warnings for inventory at risk of becoming obsolete.
- Automate recommendations for clearing excess stock.
- Improve inventory turnover and reduce carrying costs.
Supplier & Lead Time Analytics
Your inventory levels are highly dependent on supplier performance. Our AI analyzes historical supplier data to predict lead time variability, identify unreliable suppliers, and recommend alternative sourcing strategies to build a more resilient supply chain.
- Monitor supplier reliability and on-time delivery performance.
- Incorporate lead time uncertainty into safety stock calculations.
- Identify opportunities for supplier consolidation or diversification.
Inventory Simulation & Digital Twins
Test the impact of new inventory policies or potential disruptions before implementing them in the real world. We create a digital twin of your supply chain to run "what-if" scenarios, helping you make informed, data-backed strategic decisions.
- Model the financial impact of changing service level targets.
- Simulate the effect of a port closure or supplier shutdown.
- Evaluate network design changes on inventory performance.
Root Cause Analysis for Stockouts & Overstock
Don't just fix inventory problems; understand why they happen. Our system automatically analyzes the drivers behind service failures and excess inventory, pointing to root causes like forecast bias, supplier delays, or flawed inventory parameters.
- Move from reactive problem-solving to proactive issue prevention.
- Identify systemic issues in your planning process.
- Continuously improve inventory performance through data-driven insights.
Inventory Health & KPI Dashboards
Gain complete visibility into your inventory performance. We build custom, intuitive dashboards that track key metrics like Inventory Turns, GMROI, Carrying Costs, and Stockout Rates, providing a single source of truth for your entire organization.
- Monitor key performance indicators in real-time.
- Drill down from high-level metrics to granular details.
- Align operational teams and executive leadership around common goals.
Why Partner with Errna for Supply Chain AI?
Choosing a technology partner is about more than just algorithms. It's about finding a team that understands your business, possesses deep technical expertise, and is committed to delivering tangible results. Here’s why leading companies trust Errna to transform their supply chains.
Proven ROI, Not Promises
Our solutions are designed to deliver a clear return on investment. We focus on business outcomes—like reducing carrying costs by 15-30% and cutting stockouts by over 50%—that directly impact your bottom line.
Custom AI Models
We don't use generic, off-the-shelf software. We build and train custom machine learning models on your data, tailored to your specific products, network, and business challenges for superior accuracy and performance.
Seamless ERP Integration
Our solutions are built to integrate flawlessly with your existing systems of record, including SAP, Oracle, Microsoft Dynamics, and other ERP or WMS platforms. We enhance your current tech stack, not replace it.
CMMI 5 Process Maturity
Our CMMI Level 5 appraisal signifies the highest level of process optimization and quality assurance. This means predictable, reliable, and high-quality project delivery, minimizing risk and ensuring consistent results.
Secure, 24/7 Operations
With ISO 27001 and SOC2 certifications, we adhere to the highest standards of data security. Our AI-augmented operations can provide round-the-clock monitoring and support for your critical supply chain functions.
Vetted In-House Experts
We don't outsource our talent. Our team consists of over 1000 full-time, in-house data scientists, AI engineers, and supply chain domain experts, ensuring deep expertise and consistent project teams.
Risk-Free 2-Week Trial
Prove the value before you commit. We offer a paid 2-week trial where we can run our models on your data to demonstrate the potential uplift and accuracy improvements, providing a data-backed business case.
Global Experience Since 2003
With over two decades of experience and 3000+ successful projects for clients from startups to Fortune 500 companies like UPS, we have the battle-tested expertise to solve complex, real-world supply chain challenges.
True Partnership Model
We work as an extension of your team. Our agile, collaborative approach ensures we are aligned with your business goals, providing ongoing support and continuous model improvement long after the initial deployment.
Real-World Results: Our Success Stories
We measure our success by the success of our clients. Explore how we've applied our AI expertise to solve complex inventory challenges for businesses across different industries, delivering measurable improvements in efficiency, cost savings, and customer satisfaction.
AI Demand Forecasting for a Fast-Fashion E-commerce Retailer
Industry: Retail & E-commerce
Client Overview
A rapidly growing online fashion retailer with over 20,000 SKUs, facing challenges with managing inventory for products with short life cycles and high demand volatility. Frequent stockouts on popular items were leading to lost sales and poor customer experience, while slow-moving items quickly became obsolete, leading to costly write-downs.
Key Challenges
- Inaccurate manual forecasts based on simple historical sales.
- High stockout rates (over 20%) on best-selling products.
- Excess inventory on 30% of SKUs, leading to deep discounting.
- Inability to predict the impact of social media trends and influencer marketing.
Our Solution
We developed a custom demand forecasting solution that incorporated sales history, web traffic, social media sentiment, and promotional data. The system generated daily forecasts for every SKU and automated reorder recommendations to their ERP.
- Deployed ML models to predict demand for short-lifecycle products.
- Integrated an automated replenishment module.
- Created a dashboard to track forecast accuracy and inventory health.
- Modeled the uplift from specific marketing campaigns.
Multi-Echelon Optimization for an Automotive Parts Manufacturer
Industry: Manufacturing
Client Overview
A global automotive parts manufacturer with a complex, three-tiered distribution network (central plants, regional DCs, local service centers). They struggled with imbalanced inventory, holding too much stock centrally while experiencing shortages at the service centers closest to customers, impacting service levels and increasing expedited freight costs.
Key Challenges
- Poor visibility of inventory levels across the entire network.
- Decisions made in silos, leading to the "bullwhip effect".
- High carrying costs from excessive central inventory.
- Frequent, expensive expedited shipments to prevent line-down situations.
Our Solution
We implemented a Multi-Echelon Inventory Optimization (MEIO) solution. The AI model analyzed the entire network to determine the optimal stocking levels and policies for each part at each location, considering lead times, demand variability, and target service levels.
- Created a digital twin of the client's distribution network.
- Calculated optimal safety stock levels for every SKU at every echelon.
- Automated inter-depot stock transfers to rebalance inventory.
- Provided a centralized dashboard for network-wide inventory health.
Optimizing Safety Stock for a Third-Party Logistics (3PL) Provider
Industry: Logistics & Distribution
Client Overview
A major 3PL provider managing inventory for dozens of clients in their warehouses. They were using a one-size-fits-all "weeks of supply" rule to set safety stock, which resulted in excessive capital being tied up for their clients and did not adequately protect against the high variability of certain product categories.
Key Challenges
- Inefficient and inaccurate safety stock calculations.
- High working capital requirements for their clients.
- Inability to differentiate service levels for different products or clients.
- Difficulty in quantifying the trade-off between inventory cost and service level.
Our Solution
We built and deployed an AI-powered safety stock optimization engine. The system analyzed demand and lead time variability for every SKU to calculate the precise amount of safety stock required to meet specific service level targets (e.g., 95%, 98%, 99.5%), allowing the 3PL to offer tiered service levels to its clients.
- Automated the calculation of dynamic safety stock based on volatility.
- Created a "cost vs. service level" curve to facilitate strategic decisions.
- Integrated the engine with their WMS for seamless execution.
- Provided client-specific dashboards to demonstrate value and transparency.
Our Proven Path to AI-Driven Optimization
We follow a structured, collaborative, and agile methodology to ensure your AI inventory solution is delivered on time, on budget, and generates immediate value. Our process is designed for transparency and partnership at every stage.
Discovery & Data Audit
We begin by understanding your specific challenges, goals, and existing technology landscape. Our data scientists conduct a thorough audit of your historical data (sales, inventory, lead times) to assess quality and readiness for AI modeling.
Solution Design & Prototyping
Based on the discovery phase, we design a tailored solution architecture. We then build a prototype model using your data to establish a performance baseline and demonstrate the potential accuracy and ROI of the final solution.
Agile Development & Integration
Our team develops the full solution in agile sprints, providing regular demos and feedback sessions. We build robust data pipelines and integrate the AI engine seamlessly with your ERP, WMS, or other relevant systems via APIs.
Deployment & User Training
We manage the full deployment of the solution into your production environment, whether on-cloud or on-premise. We conduct comprehensive training sessions with your planning and operations teams to ensure successful adoption and usage.
Go-Live & Hypercare
After go-live, we enter a "hypercare" period of intensive monitoring and support to ensure the system is performing optimally and to address any issues immediately. We track key performance metrics to validate the business case.
Continuous Improvement & Support
An AI model is a living asset. We provide ongoing support and maintenance, periodically retraining the models with new data to adapt to changing market dynamics and continuously improve performance over time.
Technology & Tools We Master
We leverage a best-in-class technology stack to build robust, scalable, and high-performance AI solutions. Our team has deep expertise across the entire data and AI ecosystem, from cloud infrastructure to machine learning frameworks and data visualization.
What Our Clients Say
"The level of accuracy from Errna's forecasting model was beyond our expectations. It allowed us to reduce our inventory holding by 20% while improving our in-stock availability. They are true experts in supply chain AI."
"Working with Errna felt like a true partnership. They took the time to understand our unique business challenges and built a solution that integrated perfectly with our existing SAP system. The project was delivered on time and exceeded all our ROI targets."
"The automated replenishment system has been a revelation. It has freed up countless hours for our planning team, allowing them to focus on strategic initiatives instead of manually creating purchase orders. Human error has been virtually eliminated."
"Their CMMI Level 5 process was evident in the quality and predictability of their delivery. Communication was excellent, and we always knew the status of the project. A very professional and highly skilled team."
"The 'what-if' simulation tool they built is invaluable. We can now test the impact of potential supply chain disruptions in a risk-free environment, which has been critical for building our business continuity plans."
"We were skeptical about AI, but the 2-week trial proved the concept. Seeing the model outperform our existing forecasts on our own data gave us the confidence to move forward. The results have been phenomenal."
Flexible Engagement Models for Your Needs
We understand that every organization has unique requirements, resources, and goals. That's why we offer flexible engagement models designed to provide the right level of support and expertise to match your specific situation, from augmenting your existing team to delivering a fully managed, end-to-end solution.
Staff Augmentation
Seamlessly integrate our expert AI engineers, data scientists, and supply chain analysts into your existing teams. This model is ideal when you need to fill specific skill gaps or accelerate your current projects without the overhead of a lengthy hiring process.
- Access to top-tier, vetted AI talent.
- Full integration with your teams and processes.
- Scale your team up or down as project needs change.
AI-Enabled Growth PODs
Get a dedicated, cross-functional team (Project Manager, Data Scientists, AI Engineers, QA) that operates as a self-contained "Pod of Delivery." This model is perfect for developing and deploying a specific AI solution from start to finish, ensuring focused execution and clear accountability.
- End-to-end project ownership and delivery.
- Agile methodology for rapid and iterative development.
- A balanced team with all necessary skills included.
Managed Project-Based Solutions
Define the scope, and we'll deliver the results. This model is best for well-defined projects with clear deliverables and a fixed timeline and budget. We take full responsibility for the entire project lifecycle, from initial design to final deployment and support, delivering a turn-key solution.
- Fixed-price engagement for predictable budgeting.
- Clearly defined scope and deliverables.
- Ideal for implementing specific solutions like a forecasting engine or safety stock optimizer.
Frequently Asked Questions
The timeline varies depending on complexity, but a typical project follows this path: a 2-4 week discovery and data audit phase, followed by a 4-6 week prototyping phase. The full solution development and integration can take 3-6 months. We focus on delivering initial value within the first quarter.
To build effective models, we typically need at least two years of historical data, including: daily or weekly sales/shipment data at the SKU-location level, inventory on-hand levels, purchase order history with lead times, and product master data. Data on promotions, pricing, and known stockout periods is also highly valuable.
This is a key strength of our approach. Our machine learning models are specifically designed to identify and quantify the impact of these factors. We use techniques that can isolate the effects of seasonality, promotions, holidays, and other recurring events to produce a more accurate baseline forecast and predict the uplift from future campaigns.
No, our goal is to augment, not replace, your expert team. The AI handles the complex, repetitive calculations for thousands of SKUs, freeing up your planners to focus on more strategic tasks like managing exceptions, collaborating with sales and marketing, negotiating with suppliers, and planning for new product launches. It turns them into strategic managers of an intelligent system.
Data security is our top priority. We are ISO 27001 and SOC2 certified, which means we adhere to the strictest international standards for information security management. All data is encrypted in transit and at rest, and access is tightly controlled. We work with you to ensure our solution complies with all your corporate security and data governance policies.
We offer comprehensive support and maintenance packages. This includes system monitoring, technical support, and, most importantly, periodic model retraining. Market dynamics change, so we regularly retrain the AI models with the latest data to ensure they maintain their accuracy and continue to adapt to your evolving business, ensuring long-term value from your investment.
Ready to Eliminate Guesswork?
Transform your inventory from a costly liability into a strategic asset. Schedule a free, no-obligation consultation with one of our supply chain AI experts to discover how we can help you reduce costs, improve service levels, and build a more resilient supply chain.
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