Contact Us
Soft Industry AllianceCase StudiesBrick SystemHow a European Retailer Increased Gross Margin by 18% and Eliminated Overstock and Stockouts

How a European Retailer Increased Gross Margin by 18% and Eliminated Overstock and Stockouts

Brick System

Retail & e-Commerce

Brick System

Retail & e-Commerce

Key business outcomes

+18%

gross margin

-25%

excess inventory

+20%

stock availability

-30%

stockouts on high-demand items

~40%

reduction in write-offs

+15%

inventory turnover

About the client

The client is a European retailer operating with a wide assortment and a complex supply chain. The company relied on fragmented planning, procurement, and merchandising processes, where assortment decisions, procurement activities, and demand signals were not properly aligned. As a result, the business accumulated slow-moving stock while frequently missing high-demand items, leading to margin erosion and inefficient capital allocation.

Assortment and inventory alignment for profitability control

The custom solution we implemented aligned assortment, demand signals, and inventory flows into a single decision framework, ensuring that stock levels and purchasing decisions reflect real demand and margin priorities.

Business challenge

  • Assortment decisions not linked to demand
  • Overstock of low-margin items
  • Stockouts on high-demand products
  • Fragmented planning across teams
  • Manual purchasing and forecasting adjustments
  • No clear visibility into stock performance
  • Inefficient capital allocation in stock

Technology solution

  • Unified assortment and inventory data model
  • Demand-driven replenishment logic
  • Integration across ERP, WMS, and sales systems
  • Inventory performance monitoring and alerts
  • Automated procurement and stock recommendations
  • Margin-based assortment prioritization
  • Analytics for stock turnover and aging

Business results

  • Stock aligned with real demand
  • Reduced overstock and stockouts
  • Improved inventory turnover
  • Better capital efficiency in inventory
  • Fewer manual interventions in planning
  • Increased margin predictability
  • Clear visibility into inventory performance

Solution delivered

We started by analyzing how assortment, inventory, and demand decisions were made across the business. Instead of evaluating these processes separately, we examined how they interact - identifying where misalignment leads to overstock, stockouts, and margin loss. Particular attention was given to the gap between purchasing decisions and actual demand signals, where planning relied on outdated or incomplete data, resulting in inefficient stock allocation. Based on this, we introduced a unified decision framework that connects demand, assortment, and inventory flows - ensuring that stock levels and purchasing decisions consistently reflect real demand and profitability drivers.

Solution components

Unified assortment and inventory data layer

Demand-driven replenishment logic

Inventory performance monitoring

Margin-based assortment prioritization

Automated purchasing recommendations

Stock risk detection and alerts

Cross-functional planning alignment

Ensures consistent visibility across stock, demand, and assortment decisions.

Aligns purchasing and stock levels with real customer demand.

Tracks stock aging, turnover, and availability in real time.

Focuses inventory on products that drive profitability.

Reduces manual planning and improves decision speed.

Identifies overstock and stockout risks early.

Connects merchandising, supply chain, and finance decisions.

Technical challenges we successfully overcame

  • Aligning assortment, inventory, and demand data across disconnected systems.
  • Building reliable demand signals despite incomplete historical data.
  • Balancing availability with inventory cost and capital constraints.
  • Integrating ERP, WMS, and sales data into a unified model.
  • Ensuring scalability of planning logic across large assortments.

Every industry faces complexity.
We turn it into clarity and measurable results with custom digital solutions

Let's discuss your needs

More success stories

How a European Online Retailer Increased ROAS by 22% by Linking Marketing Spend to Actual Revenue
Brick System
Retail & e-Commerce
How a European Online Retailer Increased ROAS by 22% by Linking Marketing Spend to Actual Revenue

A European e-commerce retailer struggled with unstable marketing performance, unclear attribution, and hidden revenue loss at the payment stage. Brick System connected marketing spend, customer behavior, and payment outcomes to ensure that budget decisions are based on actual paid orders, not incomplete funnel data.

How a Norwegian E-commerce Retailer Reduced Stock-Outs by 35% and Stabilized Fulfillment During Peak Demand
Brick System
Retail & e-Commerce
How a Norwegian E-commerce Retailer Reduced Stock-Outs by 35% and Stabilized Fulfillment During Peak Demand

A large Nordic e-commerce retailer struggled with overselling, delivery disruptions, and inconsistent inventory data across systems. Brick System synchronized inventory, promotions, and delivery operations to ensure the business only sells what it can reliably fulfill.

British American Tobacco
Digital Transformation
Manufacturing
British American Tobacco

Our team created a first-of-its-kind system for managing production and quality. This innovation enabled the local subsidiary of one of the world’s largest manufacturers to cut costs, minimise waste, and increase revenue.

British American Tobacco

I consent to the processing of my personal data and the use of cookies for form submission and analytics, as described in the Privacy Policy and the Cookiebot banner.

Contact us to take
the shortest path to outcome

Drag & Drop Files Here or Browse Files 0 of 10

* I have read and accepted the Terms & Conditions and Privacy Policy.

Vadym Pukhalskyi

Vadym Pukhalskyi

Head of Business Development and Marketing

schedule a call