Al.Capone, a 120-store liquor retail chain in Poland, achieved a 46% faster inventory turnover and a 5.2% increase in sales after piloting LEAFIO AI's Inventory Optimization and Shelf Efficiency modules. The chain replaced decentralized, manager-driven ordering and manual planogram management with a centralized, data-driven system spanning its 2,500+ SKU assortment. These are initial pilot results, with the rollout continuing to scale across additional stores and SKUs.
To become the top chain in the country, Al.Capone has partnered with LEAFIO AI to optimize its inventory and merchandising management. After a few months of fruitful work on both sides, AI.Capone has begun to reap the first benefits of the pilot launch of the LEAFIO AI Retail Platform.
Before implementing the LEAFIO AI Retail Platform
The chain's replenishment processes were decentralized, store managers placed orders based on sales data and subjective criteria, and the overall inventory control was uncoordinated. There were overstocks, stock-outs, and suppliers had undue influence over item selection, primarily for their own benefit..
Before implementing the LEAFIO AI Retail Platform, Al.Capone needed to:
- Digitalize and centralize display management, previously managed by store managers with only some supplier-provided display standards.
- Centralize and automate ordering processes.
- Establish comprehensive tracking of key inventory indicators, including stock levels, availability, overstocks, sales, and lost sales.
- Transition to making assortment decisions based on in-depth analytics.
The implementation process
The decision to implement an integrated merchandising system was made by Al.Capone's management board, which selected LEAFIO AI after evaluating various offers. The implementation involved teams from both LEAFIO AI Retail Solutions and Al.Capone, including the commercial director and board member, Maciej Kureczko. It was particularly his dedication and perseverance that ensured a smooth transition and maximized the positive impact of the new solution on the business.
"The fundamental principles of LEAFIO AI also helped: every retail business, its processes, and operational needs are unique. This approach emphasizes the importance of implementing flexible solutions that adapt to current requirements." - Maciej Kureczko, Commercial Director and Board Member of Al.Capone.
The stages of implementation:
Stage 1 – The platform was integrated with the chain's current ERP system.
Stage 2 – LEAFIO AI was smoothly launched for a limited number of SKUs. At the same time, Al.Capone specialists were trained to work with the system.
Stage 3 – LEAFIO AI tools are being scaled up for a larger number of selected SKUs.
First results
So far the implementation and pilot launch of the LEAFIO AI Retail Platform have lead to some impressive initial results and enabled Al.Capone to:
- Access deep analytical data, enhancing the speed and accuracy of decision-making
- Integrate assortment planning, procurement, and merchandising processes on a single platform, achieving better operational flexibility
- Lay the foundation for gradual module integration tailored to the unique needs of the network
- Ensure that all chain locations benefit from a centralized system
Centralized digital planogram generation has made managing displays and shelf space much more efficient and transparent.
"Our work with Al.Capone goes beyond software implementation. We're setting a new standard in retail operations and creating an environment where decisions are balanced, processes optimized, and growth is inevitable. The project is ongoing, and our aspirations are far greater than our current achievements," noted Jane Medwin, co-founder of LEAFIO AI.
The current results of the pilot run:
| Before | After |
|---|---|
| Digital planograms | |
| Managing macro and micro space relied heavily on manual processes and the experience and intuition of company specialists. The management lacked the ability to analyze KPIs for product placement and had to visit stores in person to check planograms. This approach made it difficult to manage the growing chain. | The process is now centralized, simple, transparent, and efficient. Using LEAFIO Shelf Efficiency, Al.Capone specialists create digital planograms and conduct daily monitoring and product placement checks. The central office can assign tasks to store managers, who can then send photos of the displays through a mobile application. |
| Order processing | |
| Results relied on the experience and decisions of store managers, which were then manually consolidated by the central purchasing department. | Ordering processes are now centralized and standardized across the network. The system automates order formation and dispatch using current inventory levels and forecasted demand as inputs. |
| Automated order optimization | |
| The reconciliation of orders with supplier requirements was non-transparent and manual, resulting in regular out-of-stocks or excess inventory. | Now the processes are centralized, controlled, and coordinated. The system considers average daily usage, current inventory levels, and goods in transit to suggest the optimal order quantity. This enabled the identification of excessively high supplier requirements and initiated negotiations to update the terms. |
| Ordering schedule | |
| The lack of fixed schedules and manual order management negatively impacted inventory management efficiency. | The inventory replenishment system now operates based on predefined schedules, eliminating inconsistencies and optimizing the ordering process according to delivery frequency. Introducing day-of-week coefficients into the ordering algorithm has been crucial, allowing for detailed forecasting accuracy and enabling unparalleled precision in inventory optimization. |
| Supplier reliability | |
| Matching incoming invoices with placed orders posed challenges in closing orders, balancing accounts, and assessing supplier reliability. Identifying the source of discrepancies was also difficult. | Establishing a direct connection between each order and its delivery has boosted operational efficiency and expanded the ability to evaluate suppliers. |
| Inventory management | |
| The inventory management approach did not involve calculating and analyzing overstocks and stock-outs. | Overstocks and out-of-stocks are now calculated and thoroughly analyzed using LEAFIO AI. It serves as a critical tool for evaluating the effectiveness of ordering decisions on a daily basis. |
"The LEAFIO AI system has elevated our operations to an unprecedented level. The results speak for themselves: we've achieved unparalleled efficiency, setting a new industry standard and demonstrating remarkable improvement," said Maciej Kureczko, Commercial Director and Board Member of Al.Capone.
LEAFIO AI solutions continue to evolve to meet the dynamic needs of retailers. Do you want to achieve significant efficiency improvements? Request a demo to bring your retail operations to a new level with LEAFIO AI.
