PEKON AI Inventory Optimization Engine targets brands in beauty, fast-moving consumer goods, and adjacent industries. It manages each individual store as the atomic unit and delivers a full closed loop covering data governance, inventory diagnostics, intelligent ordering, and dynamic tuning. A built-in configurable formula engine and six-dimension health-score model support store S/A/B/C tiering and product-tag-based differentiated strategies, automatically generating replenishment, transfer, and clearance recommendations to steadily improve inventory turnover. Brands can also offer inventory optimization as a service to their distributors or dealers.

Score every store on a 0-100 scale across six dimensions - turnover efficiency, stockout control, slow-mover control, category structure, dormant stock, and assortment breadth - automatically benchmark against peers at the same tier, and quickly pinpoint where to improve.
A built-in configurable formula engine lets implementation staff edit ordering logic directly in the console - no developer needed. Each category and each store can carry its own replenishment rules, and formula changes take effect instantly. Parameters cover average daily sales, safety stock, in-transit inventory, and target service levels; advanced tiers can plug in ML forecasting models.
Match ordering rules flexibly by store attributes (type, region, tier, individual store) and product attributes (category, tag, SKU). Cross-combining store S/A/B/C tiers with product ABC classes lets each combination carry its own stocking standard and service-level target - structurally solving the imbalance that a one-size-fits-all rule creates.
After each health score, the system generates four staged recommendations - dead-stock control, slow-mover clearance, active-SKU replenishment and transfer, and excess-inventory return - each tagged with priority and expected gain. Stores can accept or reject with one click; unprocessed items expire in 72 hours, and the system tracks execution outcomes.
Covers the core inventory scenarios brands actually run: routine replenishment, big-promotion prep, new-vs-old product handover, first-drop launch of new items, supply constraints on hot SKUs, and long-shortage allocation weighted by store sales capacity. Each scenario ships with its own formula logic and parameter presets - ready to switch on once master data is set.
Continuously monitors the gap between recommended orders and actual demand. When the edit rate climbs, parameters are adjusted; when turnover days drift, standards are corrected - refined values take effect in the next cycle. Suggested cadence: weekly edit-rate review, monthly turnover review, quarterly batch parameter recalibration.
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Learn more about PEKON AI Inventory Optimization Engine
Three core differences. First, the engine diagnoses each individual store and auto-matches distinct replenishment strategies to different store tiers and product categories, whereas an ERP typically applies one rule set to all stores. Second, the engine does not stop at ordering suggestions - it covers transfers, clearances, returns, and other inventory actions. Third, it has built-in parameter self-calibration; ordering parameters are continuously refined based on execution results. In short: an ERP tells you 'what your inventory is,' the Inventory Optimization Engine tells you 'what to do about it - and gets more accurate the longer you use it.'
Five core data sets are required: product master data, store information, current inventory, recent sales transactions, and open purchase orders. Brands already using PEKON Smart Retail can connect these directly; brands on other POS or ERP systems can import via standard interfaces. In the early stage the system runs data governance first - automatically identifying active, slow-moving, and dormant SKU states, completing category ABC classification and store tiering, and establishing an accurate inventory view before diagnostics and recommendations are turned on.
Yes - store-level differentiation is a core design point. Ordering rules can be cross-matched by store attributes (type, region, tier) and product attributes (category, tag, SKU). For example, S-tier flagship stores can carry higher stock standards on Class-A best-sellers to guarantee fill rate, while C-tier satellite stores prioritize cash-flow control and a leaner SKU count. Ordering formulas themselves can be configured per store and per category, adjusted by implementation staff directly in the console - no developer required.
Six business scenarios ship out of the box, no custom development needed. For promotions, operators tag participating items 'Promo' and set a stocking multiplier (e.g. 2x); the system scales the sales estimate accordingly and generates matching replenishment orders, reverting to normal logic once the tag is removed. For supply-constrained hot SKUs, the system detects items where the total recommended volume exceeds central warehouse stock and rebalances allocations proportionally by each store's sales capacity, locking an order ceiling to prevent overcommitment.
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