Background: Leading global denim brand with complex inventory needs
Mavi is a leading premium denim brand operating in 33+ countries, known for its stylish, high-quality clothing and strong international presence. With operations in US, Canada, Germany, Russia, Australia and Turkey, Mavi sells its products across a network of 439 stores and over 4,500 points of sale. The company is recognized for its wide selection of denim products, which it offers through a combination of retail stores, department stores and online platforms.
Number of stores 439
Number of points of sale 4,500
Challenge: Balancing inventory and demand across multiple regions
Mavi faced challenges in balancing inventory optimization across multiple locations, including managing stock levels to increase availability and reduce lost sales. As a global retailer, Mavi struggled to maintain an efficient allocation system across different store sizes and product types, especially as demand fluctuated across regions and seasons. Traditional methods were no longer able to support Mavi's growing business, which required a more intelligent approach to inventory and markdown management.
Mavi needed an agile inventory management system that could enhance product availability, optimize revenue and support flexible allocation management. With the growing complexity of their global operations and expanding product offerings, Mavi sought a solution that could provide inventory visibility and control markdowns and replenishment strategies.
The company needed a solution that would reduce manual intervention, improve forecast accuracy and provide real-time insights into product demand. Mavi also wanted to enhance its revenue by optimizing product allocation and replenishment, ensuring that stores were consistently stocked with the right products in the right quantities.
Solution: AI-powered allocation, replenishment, transfer and markdown optimization
After evaluating several technology providers, Mavi partnered with invent.ai, leveraging its AI-powered inventory optimization solutions. Mavi implemented invent.ai’s suite of solutions, including Allocation Optimization, Replenishment Optimization, Transfer Optimization and Markdown Optimization, to improve inventory planning and decision-making across its retail network.
Invent.ai’s solutions leverage advanced AI-driven algorithms to make over 20 million inventory decisions daily, considering factors like sales history, store-specific KPIs, product attributes and future events (e.g., special promotions, holidays). The system was customized to address Mavi's unique needs, including size and color replenishment at a granular level to integrate seamlessly with Mavi’s existing infrastructure. The implementation was smooth with quick adaptations to data transitions and internal processes. Mavi also benefited from invent.ai’s flow-through allocation model, which reoptimizes store-size forecasts as new shipments arrive—accelerating product distribution and reducing warehouse backlogs.
Results: Revenue growth and enhanced inventory efficiency
The implementation of invent.ai’s AI-powered solutions delivered impressive results for Mavi, improving revenue and operational efficiency across its stores. Key outcomes included:
- 9.6% increase in revenue, driven by better allocation and more accurate inventory positioning
- 10.6% improvement in gross margin, achieved through optimized markdown strategies
- Significant reduction in lost sales, as AI minimizes stockouts across store locations
- Higher product availability, ensuring customers find the right items in the right sizes and colors
- Improved operational efficiency, reducing manual planning and enabling faster data-driven decisions
- Fewer unnecessary markdowns, cutting discounting costs and preserving brand value