Ydistri

Ydistri is an algorithm-computed redistribution tool for the identification of unsold inventory („dead stock“) at current locations/stores. Instead of disposing of excess or slow-moving product at discounted prices, our AI tool identifies opportunities to move them to another store within the chain, where the goods have a high probability of selling at standard price within 3 months. Our algorithm includes analysis of logistics costs to identify the optimal basket of goods to move between stores, thus minimizing distribution cost and maximizing the probability of avoiding discounts and write-offs.

In addition to reducing dead stock and slow-moving inventory, our tool also successfully solves the issue of stock-outs due to supply chain disruptions and over-selling, by re-balancing inventory between stores with inventory surpluses to stores with a lack of inventory. In the current environment of supply-chain disruptions, almost half of our redistributions at existing customers are driven by out-of-stock situations.

The application platform works in three steps:

1. Identifying stores with obsolete and excess inventory (as sending stores)
2. Finding potential stores for its relocation (as receiving stores)
3. Calculating consolidated shipments of products while optimizing operating and logistics costs.

Typical Use Cases

The solution fits best at retail chains with multiple stores or distribution centers having a broad portfolio of non-perishable products. Although every retailer attempts to avoid dead stock through precise predictive forecasting, there are always factors like inaccuracy in forecasts, minimum order quantities, change in customer behavior, safety stock levels, etc. that will generate dead stock in retail. YDistri’s unique solution goes beyond traditional replenishment systems’ capabilities to effectively address these issues.

Solution Benefits

• Selling instead of storing – We dramatically reduce obsolete and excessive inventory with no price reductions or write-offs
• Speeding up inventory turn metrics to free up working capital
• Generating additional revenue and margin
• Preventing and reducing out-of-stock situatioinis
• Improving customer experience and brand perception
• Helping assortment management