Electronics Distribution: From $6.2M to $2.4M Excess Inventory in 90 Days
ElectronicsHow an electronics distributor used AI inventory intelligence to cut excess inventory by 61% in just 90 days.
Company Overview
An electronics distributor operating across the CIS region, carrying approximately 8,000 SKUs ranging from smartphones and laptops to seasonal accessories and home appliances. Annual revenue exceeded $40M, yet profitability was being strangled by capital frozen in unsold goods.
The Challenge
The chain faced a serious inventory problem: $6.2M was locked in excess stock sitting in warehouses and on shelves. Demand forecasting was inconsistent — each store manager ordered based on gut feeling, leading to wildly different stock levels across locations. Seasonal products like air conditioners, heaters, and holiday gift sets piled up months after their peak demand window had passed.
Write-offs were climbing. Margins on forced markdowns were thin. And the finance team was raising alarms about cash flow every quarter.
The Solution
The company connected their 1C accounting system to the invent.sale platform. Within 48 hours, the AI engine had ingested 18 months of sales history, current stock positions, supplier lead times, and pricing data across all 12 locations.
The platform ran a full diagnostic:
- ABC analysis identified the products actually driving profit
- Dead stock detection flagged items with zero or near-zero movement
- Demand forecasting generated 90-day projections per SKU per store
- Markdown recommendations prioritized which items to discount first for maximum capital recovery
Results
Within 90 days, the impact was measurable and significant:
| Metric | Before | After | Change |
|---|---|---|---|
| Excess inventory | $6.2M | $2.4M | -61% |
| Inventory turnover | 52 days | 38 days | -27% |
| Write-offs | $380K/quarter | $224K/quarter | -41% |
| Stockout incidents | ~120/month | ~60/month | -50% |
The ABC analysis revealed a critical insight: just 84 SKUs (roughly 1% of the assortment) generated 80% of total profit. Meanwhile, over 3,200 SKUs contributed less than 2% combined. This data fundamentally changed how the purchasing team allocated budgets.
Key Takeaway
The freed capital was reinvested into high-demand categories, further boosting turnover and margins. Within three months on the platform, the chain reported an overall 14% improvement in gross margin.