Projects objectives include order generation automation, order optimization, purchasing process optimization, transition to centralized inventory management, reduction of overstocks and lost sales, turnover improvement. |


A consumer electronics retail chain that offers mobile gadgets and household electronics in mini, middle, and superstores across 25 cities.



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CONSUMER ELECTRONICS retail chain EVRIKA automates the order and inventory optimization by implementing LEAFIO AI PLATFORM

EVRIKA is a consumer electronics retail chain that offers mobile gadgets and household electronics in 38 mini, middle, and superstores across 25 cities that carry up to 15,000 products.

The challenge

Before the start, EVRIKA had eight stores with decentralized purchasing. All orders were calculated and generated manually (MS EXCEL) by managers at the locations and the central warehouse. This led to overstocks at certain stores and lost sales in others. Subsequently, redistribution led to extra spending that shrank margin. 

Such an approach presumes dependency on the purchasing manager's expertise, including bias, mistakes, and gut feeling instead of factual data, and leads to a higher cost of capital, lower margins, and high operational expenses with a heavy load of routine tasks.

EVRIKA management board decided to make the process more efficient and implement a centralized automated order generation and inventory management system:

  • to automate the process of order generation and stock optimization;
  • to transition to centralized inventory management; 
  • to reduce overstocks and stockouts; 
  • to improve turnover.

EVRIKA chose LEAFIO as a technology and subject matter expert partner.


Throughout this project, the LEAFIO team, along with the EVRIKA's project team, have centralized purchases, appointed eleven managers responsible for purchases at the CS and stores, created order and delivery schedules, connected the entire range of each store to automated order within four days. 

Substitute products process was also set up, solving two issues at once:

  • washing out the goods of one alternative family from the chain in order of priority, and introduce a new product to replace it;
  • to automate the process of forming goods order united in an alternative family, taking into account the remains of the entire family to avoid repacking.

Additionally, LEAFIO:

  • Introduced a product matrix in the LEAFIO PLATFORM.
  • Connected an automated order to the CS within three days, which allowed the system to manage a range of 28,500 SKUs.
  • Structured the data by introducing MOQ and package size.
  • Introduced the use of the functionality of withdrawing goods from the assortment.
  • Configured planned promotions and seasonal fluctuations algorithms.
  • Configured analytics, which allowed to control the current surplus of goods and lost sales, stocks of OUT goods and stocks for the last week, and others.

The result

Overall, the joint effort resulted in:

  • company's transition to centralized inventory management;
  • reduction of the overstocks by 1.5-fold;
  • turnover improvement 2-fold;
  • effective risk management and performance monitoring.

As a result, the basis of efficient processes in EVRIKA was laid, which made it possible to expand the business from 8 to 38 stores today.

GUIDE «How not to Fail in Selecting an Inventory Optimization Tool»