Slashing Inventory Costs 35% with Real-Time AI Analytics

The Challenge

A specialty manufacturer operating 6 warehouse locations had no real-time visibility into inventory across sites. Each warehouse ran its own inventory system, and the only way to get a consolidated view was through manual spreadsheet aggregation that happened weekly at best. By the time leadership had an accurate picture of inventory levels, the data was already stale.

The consequences were predictable: overstocking at some sites while others faced stockouts. Reorder decisions were based on spreadsheets and institutional knowledge rather than data. The manufacturer was carrying $2.4M in annual excess inventory — tying up capital in slow-moving stock at some locations while expediting emergency shipments to others where items ran out.

Previous attempts to address the problem focused on better spreadsheet processes and more frequent manual reconciliation. But the fundamental issue was systemic: without real-time data flowing between systems, manual processes could never keep up with the pace of demand changes across 6 locations.

Our Approach

DxLogic integrated all 6 inventory systems into a unified real-time dashboard. The integration layer pulls data from each warehouse system continuously, normalizing different data formats and naming conventions into a single consistent view. Leadership can see inventory levels across all locations in real time for the first time.

On top of the unified data, DxLogic deployed predictive analytics models that forecast demand by SKU and location. The models learn from historical patterns — seasonality, order trends, lead times — and generate automated reorder recommendations that account for inventory at all locations, not just the one that happens to be low. The system flags anomalies before they become stockouts: unexpected demand spikes, unusual consumption patterns, and supply delays.

Automated monitoring runs 24/7, sending alerts when inventory levels cross configurable thresholds. The warehouse team went from checking spreadsheets weekly to receiving proactive notifications the moment action is needed, with specific recommendations on what to reorder and where to transfer stock between locations.

The Results

Inventory carrying costs dropped by 35% in the first year, saving over $840K annually. All 6 locations now have 100% real-time visibility in a single dashboard, and the 6 disconnected systems feed data continuously into the unified view. The 24/7 automated monitoring has virtually eliminated stockouts while simultaneously reducing excess inventory. The warehouse team reports that they trust the data and the recommendations, fundamentally changing how they make inventory decisions.