”We have an ambitious growth strategy which is based on increasing revenues and our Return on Capital Employed. Peak understood our business goals and objectives very quickly, along with our ways of working. Their recommendations are being delivered with minimal disruption to our day-to-day operations, yielding results whilst supporting Speedy’s near and long-term strategies.”
WHO ARE YOU?
Speedy Hire PLC is a FTSE-listed equipment rental and support services provider based throughout the UK, Ireland and the Middle East. We serve customers across multiple industries including construction, infrastructure, industrial, manufacturing, facilities management, retail, leisure and events, as well as local trade.
We operate out of 220 depots across the UK and Ireland and manage a hire fleet of around 3,000 different products. Demand forecasting and inventory optimisation can have a significant impact on our business efficiency, as does our ability to generate and convert new business leads into revenue.
WHAT WAS YOUR CHALLENGE?
We aim to provide our customers with excellent service through having the right assets available when and where they are required. This has led us to achieve a strong market position with good brand advocacy. However, our challenge was to optimise our forecasting and inventory management, whilst maximising revenue. We needed to be able to hold minimal assets to reduce costs, whilst also maintaining service levels and ensuring that product availability was high.
WHAT DID PEAK DO?
We are working with Peak, an Amazon Web Services (AWS) Advanced Machine Learning Competency Partner, to improve two major elements of our business: inventory/asset optimisation and revenue maximisation.
Peak worked closely with Speedy’s asset team to understand vital business goals and processes. They have developed a range of bespoke forecasting algorithms based on factors such as product popularity and seasonality to optimise our forecasting accuracy and inventory holdings across thousands of SKUs.
Our data is ingested into Peak’s AI System and stored in Amazon Simple Storage Service (S3). It is processed using Apache Spark, running on EMR. Peak uses a number of AWS’s services to power its AI System including Elastic Compute Cloud (Amazon EC2), Lambda, Fargate and SageMaker.
Peak and its AWS-powered AI solutions are helping us to maximise revenue through better management of lead generation and lead scoring. Previously, we segmented customers based on historical spend and region, but now, thanks to AI, we’re able to reclassify customers based on their potential opportunity.
Speedy Forecasting Algorithms
1 Seasonality – determines product stock levels based on historic seasonal demand patterns.
2 Anomaly detection – ignores spikes in the training data as well as significant changes in the demand profile which may skew the true demand.
3 Stock Levels – Sets different stock levels dependant on the different products and locations, some need to BE available to customers immediately, whereas others can have some lead time.
4 Substitute Products – will consider similar products when necessary.
WHAT’S THE UPSHOT?
Peak has developed a strategy that supports our current processes, is compatible with our existing business systems and is also flexible enough to change and adapt as the company grows. Peak spent a lot of time understanding our business and core processes, ensuring the solution considered key operational constraints that could not be changed.
We are implementing their recommendations and to date have experienced no dip in day-to-day performance. We are benefiting from being an AI-driven business, with significant asset savings identified and, through re-segmentation, strong revenue growth in focused segments.
Our work with Speedy provides an insight into how Peak helped them optimise their business and grow in targeted segments. To learn more about how we can help you with increasing sales and company performance using predictive analytics and machine learning, have a chat to one of our directors. We’ll tell what’s possible, with no hard sell.
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