Continuum AI launched ReFlow, a first-of-its-kind inventory optimization solution that helps distributors better align inventory with demand, reduce asset exposure, and recover working capital trapped in the wrong stock.
“Inventory optimization has traditionally stopped at the forecast, but knowing what might sell is only half of the equation,” says Alex Witcpalek, founder and CEO of Continuum. “Distributors need to know what inventory they should actually be carrying, where it should be, and what to do when they have too much of the wrong product. ReFlow gives them that decision layer, helping them put more of the right inventory on the shelf while recovering capital from what will not move. Those decisions have a direct impact on margin and the P&L.”
Key takeaways:
· ReFlow analyzes purchase orders, sales orders, invoices, and inventory data from a distributor’s ERP to generate an accurate, SKU-level demand forecast. It then recommends what to do with what will not sell, including which products to return, transfer to another location, or liquidate.
· ReFlow also factors in current inventory levels, vendor SOPs, return agreements, and applicable return windows to inform purchasing decisions before excess inventory hits the shelves.
· In an initial pilot, ReFlow identified approximately $500,000 in recoverable inventory within a distributor’s roughly $7 million inventory position, uncovering substantial working capital that they otherwise would not have recovered.
· ReFlow uses AI to train a dedicated ensemble of demand forecasting models for each distributor to improve overall forecast accuracy. Using historical ERP data, ReFlow forecasts SKU-level demand by branch, compares projected demand with on-hand inventory, and applies relevant vendor requirements.
· ReFlow then translates that analysis into three specific actions: Return eligible products before the vendor return window closes; transfer inventory to another branch or location where demand exists; and liquidate or wholesale products that are unlikely to sell.
