[Case Study] How a Global Fashion Retailer Used AI to Maximize Margins & Eliminate Stockouts During the Holiday Season

May 7, 2025 · 3 minutes
AI in fashion retail supply chain optimization
Tina
By Tina
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Summary of the Impact:

A globally recognized fashion and lifestyle conglomerate deployed ThroughPut’s AI-powered Supply Chain Decision Intelligence Platform to transform its holiday season planning. By leveraging advanced analytics and AI in fashion retail, the company::

  • Prevented $1M+ in difficult-to-sell inventory
  • Freed up 15% shelf space and improved sales performance by 275%
  • Identified 3,000+ missed sales opportunities from a single vendor
  • Reduced supplier lead-time inefficiencies by 10%
  • Improved OTIF delivery and inventory turnover across 1,750+ stores
Download Case Study - AI in Fashion Retail

About the Fashion Retailer

This apparel giant operates across four continents with 1,750+ stores offering 75+ global brands like Tommy Hilfiger, Charles & Keith, Skechers, Aldo, and Aeropostale. With expansion plans into Hungary, USA, and Egypt, the retailer turned to AI in fashion retail to adopt a smarter, demand-driven system — especially to stay ahead during the holiday peak.

Retail Planning Challenges Faced by the Client: Why AI Was Essential

1. Inability to Bridge the Gap Between Supply, Capacity, and Demand

Legacy systems relied heavily on manual forecasts, leading to inventory misalignment, excess costs, and missed targets. The retailer needed an integrated, data-driven system to forecast and align demand with production and distribution – in real time.

2. Optimizing Product Mix and Streamlining Material Flow to Avoid Stockouts

Low-demand, low-margin products clogged shelves, while high-demand items often stocked out. A SKU-level view was needed to streamline replenishment and maximize space for profitable products.

3.  Increasing On-Time, In-Full (OTIF) Deliveries

Underperforming SKUs with long lead times created OTIF issues. There was a need to eliminate such SKUs and optimize supply chain flow for reliable performance.

4. Maximizing Sales Margins

Discounts were reactive and driven by gut-feel. The client needed predictive insights to apply strategic markdowns that drive revenue — not margin erosion.

The AI-Powered Solution: Supply Chain Decision Intelligence from ThroughPut

ThroughPut’s AI in fashion retail software analyzed 840,000+ rows of delivery data across 280,000 SKUs, mapping SKU value vs. demand and optimizing operations from procurement to retail.

How ThroughPut AI Solved Retail Planning Challenges with Decision Intelligence?

A. AI-Driven Demand Sensing

Through AI-powered demand sensing, the system continuously assessed changing demand trends across SKUs, regions, and brands—flagging missed sales opportunities and setting real-time reorder signals to eliminate understocking.

B. Inventory Optimization

Dynamic stock-level recommendations powered inventory optimization by keeping “never-out-of-stock” items readily available while minimizing waste from slow movers.

C. Logistics and Distribution Intelligence

AI-driven rule mapping prioritized shipments and eliminated costly express deliveries. Bottlenecks were identified early – before they escalated into problems.

Tangible Results of AI in Fashion Retail with ThroughPut AI

KPIResult
Inventory Waste Avoided$1M+
Shelf Space Freed15%
Performance Increase+275% from top 500 SKUs
Lead Time Optimization-10% from poor-performing suppliers
Missed Sales Flagged3,000+ from one vendor
Testing New Products10–20% extra capacity freed

Why This Case Study Matters to Fashion Retailers

Fashion retailers facing volatility, margin pressure, or stock imbalances can draw direct inspiration from this transformation.

With ThroughPut AI, you can:

  • Accurately forecast demand at the SKU and regional level
  • Streamline inventory turnover and eliminate aging stock
  • Automate discount decisions based on real-time sell-through data
  • Align supply & demand seamlessly, avoiding under- and over-stocking
Case Study - Fashion Retailers

Benefits of ThroughPut AI for Apparel & Retail Supply Chains

1. Rapid ROI in 90 Days

Start seeing tangible results without overhauling your IT infrastructure.

2. Seamless Integration

Works with your ERP, WMS, POS, or MES — no need to change what’s already working.

3. Fashion-Specific Insights

From seasonal fluctuations to brand-SKU mix optimization, ThroughPut AI tailors intelligence for fashion supply chains.

4. Proprietary AI Algorithms

Leverages machine learning, econometrics & signal processing to deliver better demand forecasting than traditional BI tools.

Ready to Transform Your Holiday Sales Performance?

ThroughPut AI helped this fashion giant turn chaos into control – unlocking value from every corner of their value chain.

Book your live demo now to discover how we can do the same for your retail business.

Book a Live Demo

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