Advance Auto Parts is one of the largest US automotive aftermarket parts providers serving professional installers and DIY customers.
The client wanted to transition from 20th-century manual retail planning processes to a 21st century digitized process to meet the increased customer expectations of providing an endless aisle of parts with fast availability through disconnected legacy systems and processes.
Core Compete built a cloud-based analytical solution that senses market demands in real-time and assortment decisions on billions of SKU-Store combinations. Customer needs are now fulfilled from inventory across multiple stores while optimizing inventory depth to maximize profit. Analytical solutions drive execution in legacy systems in a highly automated exception-based process.
To drive maximum value from the big data and analytics solution, Core Compete brought together the right components in four critical areas.
Domain Expertise – Core Compete’s retail solution architects developed a holistic vision for a system that would deliver assortment and inventory optimization in a highly automated manner. We integrated inventory, sales, store lookup and market data to support dynamic decision making.
Analytics Innovation – A range of analytical and machine learning models were built to optimize breadth and depth decisions. Demand prediction models account for customer’s willingness to wait, and a large number of key decision variables to create a highly targeted assortment with optimized inventory levels.
Technology Know-How – Core Compete built an enterprise data lake comprising hundreds of daily feeds of inventory, sales invoices, product lookups, and master data from dozens of disparate and disconnected enterprise systems. The solution was built using AWS Cloud Services, Hadoop Data Lake, Spark Data Processing and SAS on Containers for Analytics and Visualization.
Agile Delivery Methodology – Core Compete delivered the ability to optimize assortments within 3 months of the engagement, continuing with analytical application deliverables every three months to complete the entire dynamic assortment transformation program within 15 months.
Dynamic Assortment and Inventory Optimization enable Advance Auto to say YES! to the customer more often, leading to increased sales, while minimizing the inventory in the entire system. What-if capabilities enable the business to easily understand the impact of changes in inventory policies and business constraints on the business outcomes.
“Dynamic assortment will significantly improve how we forward deploy inventory and expect that when fully implemented, will enable higher turns”
Tom Greco, CEO,
Advance Auto Parts
Q1, 2019, Earnings Call