How Casas Pedro Reduced Out-of-Stock Rates and Average Storage Time with Automation

Deployed two years ago, the AI solution improved the supply process. Managers received a pre-filled spreadsheet from the algorithm with restocking suggestions, eliminating the need to spend time looking at inventory and trying to predict what would be sold in the coming days. They only needed to adjust a few items on the received table and send it to the distribution center via email.

However, the process was not running ideally. "We had many issues with spreadsheet and SQL failures that ran overnight. In the morning when the store managers were supposed to receive the replenishment recommendation, they didn’t. Then someone had to access the database, see what stalled, and fix the spreadsheets until the store received the email and could continue the replenishment process," says Ivo Ferreira, CEO of Casas Pedro.

According to Ferreira, the automatic generation and issuance of spreadsheets frequently registered errors. Since the team did not use a process management platform, store managers often did not receive the documents. Moreover, the internal team was unaware of the error until notified by the managers.

Almost every day, Casas Pedro's IT team and the employee responsible for the supply operation spent up to an hour resolving these errors. To avoid missing the replenishment window and running risks, managers often resorted to ordering products based on the AI's suggestion, which was not ideal.

This process led to potential stockouts due to reliance on outdated data—a risk to sales and the reputation of Casas Pedro, whose main competitive advantages are stock availability and service. According to data from the Brazilian Association of Supermarkets (ABRAS), up to 42% of sales losses occur due to product stockouts, and an estimated 32% of consumers turn to competitors to purchase the item.

Internally, the constant need to resolve errors led to relationship problems between management and the service area, says Ferreira, in addition to growing anxiety, decreased motivation, and high-stress levels in the internal team.