Supply Chain Optimisation
A leading British food and apparel retailer managing over 3,000 food products faced persistent challenges in product flow efficiency—stockouts, excess waste, and limited vendor flexibility. Decision Studio deployed simulation-driven SKU optimisation to deliver £80M in benefits.
In collaboration with Decision Studio, the retailer set out to transform its supply chain using advanced analytics and intelligent SKU optimisation. The aim was to create a dynamic, simulation-driven system that could determine the optimal SKU size for each product while considering vendor constraints. The process began with developing a profitability model based on the Unit of Distribution (UoD) for each product. By simulating different SKU sizes, the team identified the most profitable configuration for each product.
To ensure the system accounted for all factors, they incorporated business rules and vendor restrictions into the supply chain simulation, testing various UoD variations. This allowed the team to assess their impact on stock levels, wastage, and overall profitability. Leveraging tools like Hive and exploratory data analysis (EDA), they performed large-scale product reviews, refining the optimal SKU selection using SQL. Real-time dashboards were then used to share actionable insights, enabling stakeholders to make quick, data-driven decisions.
£80M
in realised benefits
25%
improvement in stock availability
50%
reduction in product wastage
3,000+
products optimised across multiple SKUs
By adopting dynamic simulations and real-time data insights, the retailer ensured better product availability and maximized profitability. This shift to a data-driven, optimized strategy delivered measurable results, proving the power of advanced analytics in retail operations.
