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Boticário Case: minimization of stock depletion and failure in product replenishment in franchises

The Boticário Group is a 100% Brazilian beauty company. The group manages a series of renowned 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, connected to 900 franchisees. It is present in 1,750 Brazilian municipalities and has over 3,800 stores in Brazil, as well as exporting its products to eight other 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 decreases in the company’s revenue. Considering this, 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.

  • Cliente

    Grupo Boticário

  • Indústria

  • Temáticas

    Data Science, Data Engineering

  • Operações Digitais

    Analytics

With the challenge presented, we developed an Agile Retail solution.

The solution proposed by us was the structuring of a Data Lakehouse, which combines concepts and techniques from both data warehousing and data lake.

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

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

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

At the end of the process, an expert from the Boticário Group evaluates the results presented by Agile Retail, making only minor adjustments to the orders, and finalizes the purchase of products for the franchisee.

Resultados

With Agile Retail, the Boticário Group was able to create an additional source of revenue through the monthly service fee, while also avoiding significant losses resulting from the risk of stockouts in its hundreds of stores throughout Brazil. As a result, the predictions become increasingly accurate, as the Neural Network learns from new patterns and information provided by the expert based on subscriber franchisee data.

+Income
generated through the subscription of "Agile Retail"
-Risk
of stockouts in hundreds of stores scattered throughout Braz
+Accuracy
in stock forecasts and new patterns of inf

Entre em contato

CEO

Thiago Bacchin

Founder and CEO, Thiago is one of the pioneers in performance marketing.

CEO EMEA

Gustavo Bacchin

Co-founder and CEO EMEA, he has 23 years of experience with digital marketing.












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