Case Boticário: Agile Retail Prevents Product Stockout in Franchises

The Boticário Group is a 100% Brazilian company in the beauty segment. The group manages a series of reference companies in the country, such as O Boticário, Eudora, quem disse, berenice? and The Beauty Box. The company has 7,000 direct employees and 25,000 indirect employees, linked to 900 franchisees. Present in 1,750 Brazilian municipalities and with more than 3,800 stores in Brazil, in addition to taking its products to another eight countries.

One of the main challenges faced by the Boticário Group in its franchises is product stockouts at the point of sale, which results in significant drops in the company's revenue. With this in mind, O Boticário sought our services to develop a solution capable of predicting the "perfect order" for each franchise, based on the behavior of consumers at each franchise and previous sales.

With the challenge presented, we developed an Agile Retail solution

To reduce the problem faced by the Boticário Group, our team developed an Artificial Neural Network composed of a complex prediction system to assist the Boticário Group's franchise network.

As a result, all purchase orders (including specifications of which products and quantities) are entirely made by a team of specialists from the Boticário Group, with the assistance of an Artificial Intelligence developed to support this activity. This solution is offered to franchisees as an additional service that can be contracted monthly.

To make this project possible, our team integrated three other systems into the Neural Network forecast, which also process historical data. Therefore, it was understood that the use of standard algorithms would not be enough to correctly analyze the time series of this database.

At the end of the process, a Boticário Group specialist evaluates the result presented by Agile Retail, making only fine adjustments to the orders and finalizing the purchase of the products for the franchisee.

Results

With Agile Retail, the Boticário Group was able to create an additional source of revenue with the service fee, in addition to avoiding significant losses from the risk of rupture in one of its hundreds of stores spread throughout Brazil. In this way, the predictions become increasingly precise, since the Neural Network learns from the new patterns and information provided by the specialist based on the subscriber franchisee's information.

Additional revenue

generated through the subscription to "Agile Retail"

Less risk

of rupture in hundreds of stores spread throughout Brazil

More accuracy

in stock forecasts and new information patterns