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How MultiQoS Cut Inventory Costs 37% and Stockouts 92% for a $250M Fulfilment Centre

MultiQoS developed an AI-driven inventory management system that connects demand planning, inventory tracking, and warehouse operations into a single platform. It gives teams real-time visibility across fulfilment centres and helps manage stock movement, replenishment, and order flow more efficiently.

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AI-driven Inventory Management System

AI-Driven Inventory Management Solution for E-Commerce Fulfilment

The client previously struggled with stock mismatches, delayed decisions, and weak coordination due to manual tracking and disconnected systems. MultiQoS implemented a solution that used predictive inventory analytics to streamline operations. This led to a 37% reduction in inventory costs, 99%+ stock-level accuracy, and a 92% reduction in stockouts, thereby improving speed and control of fulfilment operations.

Inventory Management Solutions

Real-Time Inventory Visibility

Automated Replenishment

Inventory Insights Dashboard

Warehouse Operations Integration

The Challenges Client Faced

The client operated a $250M e-commerce fulfilment centre processing nearly 1M orders per month. Despite the scale, their e-commerce fulfilment inventory management was driven by a basic WMS and periodic stock counts across two distribution centres managing 50,000 SKUs. This resulted in limited visibility, delayed decision-making, and poor coordination across operations.

Operational Tracking Errors

Manual picking and rushed replenishment cycles led to 12% operational errors, impacting stock reliability and slowing fulfilment processes.

Rising Operational Costs
Rising Operational Costs

Inefficient operations increased carrying costs by $3.2M annually, including $1.1M in obsolescence, increasing margin pressure due to limited AI inventory optimization.

Inventory Stock Imbalance

The client faced 18% stockouts and 22% overstock due to demand volatility and inconsistent forecasting across locations.

Weak Inventory Control
Weak Inventory Control System

Legacy barcode systems failed to support smart inventory control, especially during peak demand spikes, making inventory management reactive instead of data-driven.

How We Built the AI-Driven Inventory Management System

We followed a structured approach to fix inventory inefficiencies across a $250M fulfilment operation. The goal was to connect disconnected systems, reduce forecasting errors, and improve real-time control over stock movement.

Discovery

2 Weeks

Reviewed WMS and sales data through API analysis

Studied inventory movement across two DCs

Identified forecasting gaps causing excess stock

Mapped workflows for 50,000 SKUs

Audited barcode and warehouse processes

Found delays in replenishment planning

DEVELOPMENT

7 Weeks

Built a unified inventory management platform

Developed ML models for demand forecasting

Integrated GenAI for inventory simulations

Connected ERP and WMS systems using Kafka

Enabled IoT-based bin-level inventory tracking

Created real-time inventory monitoring dashboards

DELIVERY

3 Weeks

Deployed the system across fulfilment centres

Ran shadow operations for live validation

Tested inventory workflows during peak demand

Trained 150 warehouse and operations users

Improved adoption through guided onboarding

Delivered one-month post-launch support

AI-powered inventory intelligence built for high-volume fulfilment centres.

Let’s Build Together
Let’s build together

Core Features of the AI-Driven Inventory Management System

The system integrates inventory, demand, and warehouse operations into a single workflow. Teams track stock movement, understand changes, and act without waiting for reports.

Unified Inventory Data Layer

ERP and WMS data come together to give a clear, real-time view of inventory across both distribution centers. This removes gaps and improves stock visibility.

AI-Based Inventory Engine

The system studies sales patterns and demand trends to support better planning. It helps teams maintain balanced inventory levels when demand changes.

System Integration Framework

System Integration Framework

ERP and WMS systems connect and stay in sync. This keeps data consistent and removes manual updates.

Scenario Simulation Module

Scenario Simulation Module

Teams test different demand and inventory scenarios before making decisions. This reduces guesswork and improves planning accuracy.

AI-Driven Inventory Management Across Fulfilment Operations

MultiQoS connected the ERP and WMS systems through Kafka, so stock updates moved directly between the warehouse and inventory systems. Teams could track inventory movement in real time instead of depending on manual updates and delayed stock counts. This improved day-to-day inventory control and supported AI-driven inventory management during fulfilment operations, helping teams respond faster during peak order periods.

    AI-driven Inventory Management

    Delivering Inventory Control in Real Fulfillment Operations

    The system was introduced into existing fulfilment workflows without changing daily warehouse processes. Inventory updates moved automatically between ERP and WMS systems, helping teams manage replenishment, stock allocation, and fulfilment activities with better coordination across distribution centers.

    Faster Replenishment Planning

    Teams identified inventory gaps earlier and planned replenishment more efficiently across warehouse operations.

    Better Inventory Accuracy

    Connected inventory updates reduced stock mismatches and maintained more reliable inventory records during daily operations.

    Inventory Management Use Cases

    Faster Peak Demand Response

    Warehouse teams responded quickly to changing order volumes and inventory movement during peak fulfilment periods.

    Stronger Inventory Control

    The system helped operations teams maintain stable inventory handling across fulfilment workflows without depending on delayed stock updates or manual coordination.

    Let’s Build Smarter Inventory Operations Together

    Start Improving Inventory Accuracy Today

    MultiQoS helps e-commerce businesses improve inventory planning and reduce operational inefficiencies across fulfilment operations. Our team builds AI-driven inventory management systems that support better stock control, faster replenishment decisions, and more accurate inventory handling across warehouse operations.

    Contact Us
    Smarter Inventory Operations

    Real-Time Inventory Monitoring in Fulfillment Operations

    Real-Time inventory tracking
    Periodic Stock Count
    Smart Inventory System

    The client relied on periodic stock counts and disconnected warehouse updates, making it difficult to manage inventory accurately across two distribution centers handling 50,000 SKUs. MultiQoS connected ERP and WMS data through Kafka and enabled bin-level inventory tracking during fulfilment operations. This helped teams identify stock gaps and replenishment delays earlier, improving fulfilment performance while helping reduce stockouts and margin loss from excess inventory.

    Measurable Results That Improved Inventory Performance

    The system delivered measurable improvements across fulfilment operations by reducing costs, improving stock accuracy, and strengthening inventory control across distribution centers.

    37%

    Reduction in Inventory Carrying Costs

    Improved planning and better stock control reduced excess inventory and lowered overall carrying costs across fulfilment centers.

    99.2%

    Pick Accuracy Achieved

    System-driven tracking improved picking accuracy and reduced errors during high-volume operations.

    Results
    92%

    Reduction in Stockouts

    Stockouts decreased from 18% to 1.4%, ensuring better product availability and smoother order fulfilment.

    $2.5M

    Revenue Protected

    Improved stock availability helped prevent lost sales and protected revenue across fulfilment operations.

    Our Technology Stack

    AI / Machine Learning

    • Python
    • LangChain
    • OpenAI (GenAI simulation layer)
    • scikit-learn

    Backend

    • Node.js
    • PostgreSQL
    • Apache Kafka (event streaming & sync layer)

    Frontend / Web

    • React

    Mobile Application

    • Flutter (warehouse operations app)

    Analytics & Reporting

    • Power BI (inventory dashboards & reporting layer)

    Cloud & DevOps

    • Microsoft Azure

    IoT & Integration

    • IoT bin sensors (real-time inventory tracking)
    • ERP / WMS API integrations

    Trusted by Our Clients

    Praising Voices Reflecting Our Excellent Work

    Clients praising us for our work is a true reflection of the amazing work that we have done with heart and soul to pave the way for their success.

    Rose H

    “It's rewarding to work with a diligent and dedicated team. Excellent guys to work with! Always listened to my thoughts and came up with creative design solutions. Whenever you need them, they are available and eager to share their knowledge.”

    Rose H

    CEO - Polished

    Swantje Uphoff

    “I am highly satisfied with their work. Our collaboration is seamless, and we have regular discussions with their developers to define tasks and ensure progress. We were particularly impressed with their excellent communication skills.”

    Swantje Uphoff

    Founder - Screeners Berlin

    BEN T

    “Our vision was understood and they asked really detailed questions to find out what was required. A well-defined process was followed during the development process and the team captured requirements diligently. The team is also flexible enough to adjust to the schedule.”

    BEN T

    CEO - Gameday Guide

    FAQs

    Frequently Asked Questions

    How does the system help with stock issues?

    It keeps inventory updated as items move across locations. Teams can see changes early and fix shortages or excess before they start affecting orders or fulfilment timelines.

    Can it handle large volumes of orders and SKUs?

    Yes. It is built for high-volume operations. Even with large SKU counts and heavy order flow, it keeps inventory data updated and reliable.

    How quickly can teams act on inventory changes?

    Updates happen as stock moves. Teams can spot issues during operations and take action right away instead of waiting for reports later.

    Will we need to change our current systems?

    No. It works with the systems you already use. The setup connects your ERP and warehouse tools so everything stays in sync without changing daily workflows.

    How do teams check what’s happening with inventory?

    They use dashboards that show stock levels, movement, and trends. This makes it easier to understand what’s happening and take the right actions during the day.

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