AI-powered Inventory Allocation and Price Optimization

A2go revolutionized operations for a $5 billion beef processor using AI-powered price optimization and inventory allocation, achieving unprecedented results across their global network.

Client Snapshot

150,000+

Customers Served

65

Production Facilities

17

Sales Channels

  • Business Challenge
  • Beef Price Dynamics

Dynamic beef prices varying week-to-week across 17 unique sales channels.

  • Cost Complexity

Complex cost structures: production, cost-to-serve, logistics, and regional tax variations.

  • Local Optimization

Autonomous plants selling locally sub-optimized revenue and product allocations.

  • Process Limitations

Manual processes were not able to manage vast product diversity.

  • Critical Success Factor: Precise Demand Prediction

Managing the abundant beef supply to prevent both surpluses (which led to waste due to perishability) and stock shortages was critical. Buying behavior varied significantly by customer type and sales channel, making accurate prediction across the diverse customer base essential.

  • The Strategic Solution

Maximizing Revenue Through Analysis

Utilized clustering analysis to predict demand, optimize pricing, and strategically allocate products to maximize revenue and safeguard profits.

Clustering Analysis

Analyzed customers’ buying behavior by volumes, frequency & intervals between purchases to predict demand.

Price Optimization

Strategically allocated products, ensuring each item sold into the optimum sales channel to maximize demand & revenue.

Revenue Optimization

Dynamically allocated each product to optimum sales channels & geographic regions, thereby safeguarding profits.

Monitoring Inventory and Sales

Demand Sensing Agents monitored DC inventory & rate-of-sale for each item:

Channel Optimization

Optimized allocation of products to the most profitable channels & regions.

Expiration Avoidance

Optimized production plans &
cost-to-serve across all 65 facilities.

Supply Management

AI agents ensured a balanced beef supply, avoiding surpluses & gaps.

  • Exceptional Results

Sales Volume Increase

Significant growth
in overall sales volume

Global Revenue Increase

Far exceeded initial forecasts of 1.5–3%

$200M

Annual Profit Increase

The most amazing
benefit realized

  • A2go’s AI-powered optimization delivered transformational results for this customer. This case clearly illustrates how A2go’s Agentic AI moves beyond pricing to optimize both allocation and planning simultaneously, unlocking revenue, margin, and working capital gains.