Background
Migros, one of the world's leading grocery retailers, operates over 2,000 stores ranging from small convenience outlets to large hypermarkets. With an annual revenue of $4 billion and managing a vast portfolio of 30,000 SKUs across 11 distribution centers, Migros is recognized for its top-tier customer service and extensive selection of fresh produce and ready-to-eat meals.
Annual revenue - $4 Billion
Number of employees -27,000
Number of stores - 2,000
Number of SKUs - 30,000
Number of DCs - 11
Solutions
Forecasting
Replenishment
Challenge
Migros faced a tough challenge in aligning two key goals: reducing inventory to enhance cash flow while ensuring high product availability to meet customer demand. Managing 30,000 SKUs across a large network of stores and fulfillment channels—both in-store and e-commerce—made it difficult to strike the right balance.
Traditional systems and manual processes were unable to cope with the increasing scale and complexity. Migros sought to minimize out-of-stock situations without the risk of overstocking, while also being agile enough to respond to changing demand patterns driven by promotions, seasonal trends and supply constraints. The solution needed to work in real-time and reduce the reliance on constant manual intervention by planners, ensuring seamless operations across all fulfillment channels.
Solution
To address these challenges and future-proof their operations, Migros partnered with invent.ai after evaluating multiple technology providers. They chose invent.ai’s AI-powered platform for its advanced capabilities in inventory forecasting and replenishment. The collaboration began with a successful pilot program across 200 stores, which then expanded to all 11 distribution centers and 2,000 retail locations.
The solution included real-time inventory tracking to ensure accurate forecasting and monitoring of inventory at the product-store-day level, adaptive forecast models that automatically adjust to trends, outliers, lost sales and strategic replenishment decisions that make daily decisions based on business priorities, revenue and other operational factors. It also involved customized replenishment logic tailored to specific product categories like perishables, seasonal items, fast-moving goods and cross-channel fulfillment that includes e-commerce alongside traditional retail fulfillment, multi-supplier and warehouse coordination to ensure smooth operations across 30,000 SKUs.
Invent.ai’s platform makes over 20 million inventory decisions each day, automatically factoring in strategic, financial and operational constraints. The AI system was customized for Migros’ retail network, and the company continues to benefit from regular updates and enhancements based on feedback and collaboration.
Results
The implementation of invent.ai’s AI-powered inventory solution delivered measurable improvements to Migros’ inventory performance, customer service and operational efficiency.
Key outcomes included:
- Inventory optimization: Inventory days decreased by 11%, freeing up valuable working capital and providing greater flexibility for other business priorities
- Enhanced product availability: Availability improved by 1.7%, leading to higher customer satisfaction and more reliable in-store and online experiences
- Reduction in lost sales: Lost sales were reduced by 1.3%, as more accurate forecasts and smarter replenishment strategies minimized stockouts
- Cost savings: Overstocking and excess carrying costs were reduced, particularly in perishables, leading to lower spoilage rates
- Operational improvements: The planning team reduced manual effort, allowing them to shift focus from daily tasks to strategic initiatives
- Reliable order accuracy: The accuracy of AI-generated orders increased, with fewer overrides required
- Seamless multi channel fulfillment: The solution worked effortlessly across both retail and e-commerce channels, ensuring consistent service
Building on the success of this project, Migros is now exploring additional AI-driven enhancements, including opportunities in areas such as assortment planning, pricing optimization and promotion forecasting. The goal is to develop a fully integrated and adaptable supply chain that can respond to future retail demands. By continuing to work with invent.ai, Migros is not just solving its current inventory challenges but also paving the way for a more agile, customer-centric retail operation in the future.