Assortment Planning & SKU Optimization

Results from early adopters show significant value. A European retailer identified 150 high-value SKUs that deserved more visibility and 200 low-value ones that deserved less, cutting €2 million ($2.17 million) in operating expenses within 90 days, according to Throughput Inc., the provider of the AI technology. The retailer further projected up to €10 million ($10.86 million) in profit improvements per facility through optimized SKU allocation. A McKinsey case study found assortment optimization can reduce SKUs by 36% while still growing sales and margins by up to 2%. One consumer goods company eliminated 40% of low-performing products in a single year, improving cost structure and focus.

In B2B distribution, the fiscal impact is equally strong. Studies show that AI-driven demand forecasting has reduced inventory by 20% to 30% for some industrial distributors while improving fill rates by up to 8%. A leading building- products distributor used an AI-powered supply chain control tower to enhance availability, while an industrial supplier applied generative AI to uncover $2 billion in sales opportunities. A global petrochemical firm gained about $100 million in earnings through machine-learning-enabled dynamic pricing. 119 2.2 Sell (Conversion & Revenue Growth) Grocers, which typically sell many thousands of products in each store, expect to quadruple AI spending by 2025, prioritizing demand forecasting and localized planning. Retailers using advanced analytics and market basket analysis report gross margin gains of 2% to 3%. Most start with pilots in limited categories, then expand after refining their models and governance processes.