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How did Plum Living reduce inventory by 21% at go-live?

Flowlity recognized as Gartner Cool Vendor 2025 in supply chain planning
Answer:

Flowlity replaced Plum's manual replenishment with AI-sized buffers that account for demand variability and supplier lead times rather than relying on flat coverage rules. Excess safety stock that had built up during the Excel era as a defensive reflex was released as the system right-sized policies SKU by SKU, which translated directly into a 21% inventory drop at go-live.

Over time, the long-term reduction reached 38% (from a €598k baseline to a €367k target) as planning strategies continued to mature. At unchanged demand, this lifted inventory turnover by roughly 60%, which freed working capital that Plum Living redeployed into growth investments rather than warehouse storage. Service levels held steady throughout the transition because the AI buffers, while smaller in aggregate, were positioned more intelligently across the catalogue: small movers no longer carried defensive overstock while fast movers gained the protection they actually needed. The 38% long-term gain compounded as more data flowed in and as planners refined the AI parameters with their domain knowledge.

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