During my tenure at EJ Gallo Winery, I worked on operations for the e-commerce websites TheBarrelRoom.com and EtherEthyl.com. One of difficulties was managing inventory and minimizing inventory loss.
We overestimated the amount of inventory needed for the sites which resulted in the following:
- Wine went stale after sitting in warehouses for months and had to be thrown away. The business lost money from this.
- Some vintages of wine were not being bought fast enough by consumers. Eventually, the brands moved onto newer vintages so our sites also needed follow to suite in order to keep up with the latest trends and demand. As for the older vintages of wine, occasionally we sent the product back to the warehouses or sold it to retailers. In the case that either of those options did not come to fruition, the older vintage would be thrown away—a loss in profit for the business.
I created an inventory analysis spreadsheet using data from SAP, Salesforce, and SQL that forecast sales for each product on the site based on historical data. The results from this spreadsheet are that we reduced the total amount of inventory held by our supplier by over 38% while still meeting the demand of consumers.