ITC Ltd. Boosts Quick Commerce Inventory Efficiency Using Tensight Analytics

Overview

ITC Limited, one of India’s leading corporations, has a diversified presence across key sectors and is known for its vast portfolio of trusted brands. The company faced challenges managing over 900 SKUs across regions, with expiry based stock levels, stockouts, and dark stores management. To overcome this, ITC partnered with Tenovia to optimize inventory planning using Tensight.ai, integrating sales, stock, and purchase order data for better visibility and automation.

Objectives

  • Address stockouts and overstocking to optimize sales and warehouse space in both mother warehouse and Dark stores. 
  • Improve inventory tracking and demand forecasting to enable efficient stock replenishment
  • Mitigate risks associated with shelf-life constraints to protect profitability and market value
  • Streamline the Purchase Order (PO) process to reduce time and human error
  • Incorporate dark store inventory for accurate demand forecasting

Our Strategy

  • Implemented Tensight.ai’s Inventory Health module that integrates sales, stock, and PO data for real-time visibility into inventory movement and stock levels
  • Calculated dynamic Days of Inventory on Hand (DOH) to optimize stock levels and reduce stockouts basis customised business logics
  • Used Tensight.ai’s Stock Aging module to identify and prioritize the liquidation of aging inventory, with targeted marketing efforts like flash sales and promotions to clear out stock and minimize losses
  • Eliminated  manual intervention by automating the PO process by automatically raising alerts and processing requests on their Stock Management System
  • A tailored inventory and PO logic was crafted to optimize Bangalore’s fulfillment operations, catering specifically to the unique roles of its four dark stores

The Impact 

  • Managed inventory for 985 SKUs across 12 categories and 6 locations including dark stores to improve capital utilization
  • 30% improved efficiency with automated processes reduced PO turnaround time and eliminated manual errors
  • Improved demand forecasting and stock planning enhanced product availability and customer satisfaction
  • Effective liquidation strategies minimized aging inventory and optimized capital efficiency
  • Lower inventory holding costs by preventing product expiries
  • Enhanced inventory planning across diverse categories and regions strengthened ITC’s market leadership