EU Home & Garden Online Retailer case study

European online retailer for home décor, garden, DIY, and eco goods

Challenge
Excessive inventory (27% of turnover) and high logistics costs. This locked significant capital in stock and eroded margins. Planning sat in 20+ disconnected systems, supplier delivery times were uneven, and demand swung by season. With two central warehouses and several logistics partners, coordination gaps and slow feedback made restocking decisions slow and inconsistent
Solution
• We worked with the client to design a new AI-powered platform for demand forecasting and inventory optimization. The goal was to replace fragmented planning with a single, reliable system that could connect suppliers, warehouses, and logistics partners
• The solution began with building a unified data layer that integrated feeds from 20+ systems, including supplier portals, ERP, and WMS. To ensure data quality and accessibility, we prepared and consolidated these sources into a Lakehouse architecture based on Databricks, giving planners a single point of truth
• We developed a forecasting model using Catboost, retrained weekly to capture both seasonality and short-term demand shifts. These models generated SKU-level predictions that directly fed replenishment logic
• On top of forecasting, we built an optimization engine that recommended purchase orders and restocking plans. The engine was tightly integrated with ERP and WMS workflows so that logistics teams could act on insights without manual reconciliation
Impact
Forecasting accuracy improved from 72% to 89%
On-hand inventory reduced by 22% without impacting product availability
Approximately €5M in annual savings across inventory and logistics
Tools & Technologies
Data Processing
Astronomer (cloud Apache Airflow)
Confluent / Debezium
Databricks
AI & ML
Azure Machine Learning StudioAWS Lambda
Catboost
API and Backend
AWS Lambda
Amazon RDS for PostgreSQL

Looking for a senior team that delivers?

Fill in the form below or reach out to us directly — hello@pangolindev.com

By clicking the button, I agree with the collection and processing of my personal data as described in the Privacy Policy
Thanks, we'll get in touch with you shortly.
Oops! Something went wrong while submitting the form.