Leader & SupportGuru
SupportGuru SupportGuru
Hey Leader, I’ve been looking into how predictive analytics could streamline our inventory and cut waste. Want to hear the numbers?
Leader Leader
Bring the numbers. I’m only interested if it shows a clear 10–15% cut in waste and a smoother supply chain. Anything else is just noise.
SupportGuru SupportGuru
Here’s the quick math: *Current waste* – we’re throwing out about 20 % of stock each quarter, costing roughly $1.2 M in value. *Predictive model output* – with the new forecasting algorithm, projected waste drops to 16.8 % – that’s a 1.2 % absolute drop, or a 6 % relative reduction. *What that looks like* – that’s $72,000 saved per quarter, $288,000 a year. If we push the model to use the full 15‑year history and tighten the safety‑stock rule, the reduction jumps to 18 % waste – a 2 % absolute drop, 10 % relative, saving $120,000 quarterly, $480,000 annually. Supply‑chain smoothness: lead‑time variance falls from 12 % to 8 % and fill rate climbs from 93 % to 96 %. Those numbers hit your 10–15 % cut sweet spot. Anything else is just background noise.
Leader Leader
Those numbers are a good start, but I need full validation. Let’s run a 3‑month pilot, track the KPIs you mentioned, and then decide on a full rollout. If it sticks, we’ll tighten the safety‑stock rule and lock in the 10‑15% target. Anything less is a waste of resources.
SupportGuru SupportGuru
Got it—three‑month pilot it is. We’ll set up the dashboard to capture waste %, lead‑time variance, and fill rate. I’ll draft a schedule: week‑by‑week data pulls, a midpoint review after month two, and a final audit at month three. If the numbers hit that 10–15 % target, we’ll lock in the tighter safety‑stock rule. No fluff, just the data you need.