AWS for Industries
Onebeat reduces retail waste through AI-powered inventory optimization
In the ever-evolving retail landscape, one crucial aspect often overlooked is the significant environmental impact of inefficient inventory management practices—contributing to pollution, resource depletion, and greenhouse gas emissions. Onebeat, an Amazon Web Services (AWS) Retail Competency Partner offers an artificial intelligence (AI)-powered inventory optimization platform that addresses the sustainability challenge through a holistic approach to inventory management. By dynamically responding to demand changes, optimizing inventory to the most granular level, and preventing overstocks, Onebeat is at the forefront of helping drive sustainability in retail.
The high environmental cost of inefficient inventory management
Inefficient inventory management can be disastrous for the environment. Overstocking and misallocation often lead to excess waste and the eventual disposal of unsold products, contributing to the mounting global waste crisis. For instance, in the fashion industry alone, it’s estimated that unsold clothing worth billions of dollars ends up in landfills or is incinerated every year. According to a report by the Ellen MacArthur Foundation, the equivalent of one garbage truck of textiles is wasted every second. This not only represents a significant economic loss, but also contributes to the release of harmful pollutants into the environment.
Richard Stad, CEO of Aramis, noted, “We are selling more with a smaller assortment, and we had an improvement of 60% of inventory turns in the stores.” This statement emphasizes the potential for efficient inventory management to both drive sales and uphold environmental principles.
Onebeat’s architecture, built on MACH principles—Microservices, API-first, Cloud-native, and Headless—further enhances its sustainability-focused retail technology. Integrated with AWS services such as Amazon Elastic Compute Cloud (Amazon EC2) and Amazon Aurora for PostgreSQL, Onebeat optimizes inventory management to reduce waste and steer retailers toward a sustainable, efficient, and responsible future.
Gerardo David, Owner and CEO of Odara, attested to its effectiveness: “Onebeat freed up more than 30% of our overall inventory, providing crucial liquidity during challenging times, all while reducing stockouts and boosting our sales.”
Onebeat’s dynamic response to demand changes
At the core of Onebeat’s sustainability-driven approach is the dynamic response to demand changes. Unlike traditional methods, Onebeat’s AI algorithms monitor demand patterns in real-time, ensuring that inventory is accurately aligned with current consumer needs. By dynamically adjusting stock levels, Onebeat minimizes the risk of overstocks and shortages, optimizing resource utilization and reducing waste. Onebeat estimates that this proactive approach reduces up to 50%, on average, of the environmental impact of excessive production and waste generation. Through its Initial Allocation feature, Onebeat also ensures efficient distribution of new products, curbing excessive transportation and the ensuing environmental footprint.
Tackling overstocks and misallocations
Seasonal shifts can be a bane for retailers due to overstock risks. However, with Onebeat’s monitoring and replenishment capabilities, precise demand forecasting and in-season distribution management retailers can prevent these pitfalls. Special events, known for causing inventory imbalances, also benefit from Onebeat’s AI features, which enable proactive inventory adjustments, ensuring optimal stock levels and minimal waste.
During promotions and special events, sudden fluctuations in demand can lead to inventory imbalances. Onebeat’s AI Special Events feature allows retailers to proactively adjust inventory targets, preventing stockouts or overstocks. By accurately forecasting demand and optimizing stock levels, Onebeat enables retailers to make AI-driven decisions that reduce waste and enhance resource utilization.
Misallocations, another frequent challenge in retail, can lead to excessive inventory in some locales and deficits in others. Onebeat’s Store Transfers feature enables efficient inventory redistribution, ensuring products land where they’re most needed.
Liquidating global tales at the right time
Over time, slow-moving inventory can become a significant burden for retailers, tying up valuable resources and storage space. Onebeat can easily identify those slow-moving items, across the chain, and help retailers to liquidate at the right time, minimizing the environmental impact of unsold products while optimizing resource allocation for more profitable merchandise.
Conclusion
Onebeat’s all-encompassing approach to inventory management melds profit optimization with a staunch commitment to sustainability. Their suite of solutions, tailored to bolster sustainability and resource efficiency, pioneers a brighter path for the retail industry. By integrating Onebeat’s platform, retailers can spearhead significant positive change in retail sustainability. Onebeat’s comprehensive suite of solutions ensures seamless integration with existing systems and uses data to yield potent business insights and forecasts.
Onebeat is currently offering a complimentary assessment of your inventory health, available through the AWS Marketplace. This opportunity allows retailers to grasp Onebeat’s potential advantages without disrupting their current operations.
AWS Partner spotlight
Onebeat is revolutionizing legacy Supply Chain Management (SCM) solutions by replacing them with modern, AI-enabled solutions. Onebeat solutions are trusted by over 170 retailers across 26 countries in various retail sectors, from fashion and footwear to jewelry and beverages. Onebeat has transformed the traditional retail market scenario with their innovative approach, enabling retailers to enjoy increased full-price sales and higher margins, all while using less capital.