AI-Driven Inventory Management Boosts Efficiency at BBQGUYS and PCM

AI Enhances Forecasting and Reduces Distressed Inventory
BBQGUYS, an online retailer of grills and outdoor kitchen products, has significantly improved its inventory management through the use of Artificial Intelligence (AI). In partnership with Hydrian, a supply chain consultancy, BBQGUYS utilizes machine learning (ML) models and cloud computing to create probabilistic forecasts, helping the company manage a broad product portfolio more efficiently. This strategic approach has drastically reduced distressed inventory, with only 0.6% of purchases being left unsold after six months, a significant improvement from just two years ago.

Strategic Reshoring and Optimized Sourcing
Under its ownership of Pacific Coast Manufacturing (PCM), BBQGUYS has effectively integrated domestic stainless steel fabrication into its supply chain strategy. While the company still sources some products globally, it leverages domestic production for high-demand items and those with unpredictable fluctuations, allowing for quicker response times and reduced inventory holding costs. This flexible sourcing model supports BBQGUYS’ seasonal demand spikes, particularly during the spring and summer months when grilling products are in high demand.

AI-Driven Forecasting Optimizes Lead Times and Inventory Management
Hydrian’s AI models not only forecast demand but also create lead time predictions, which are crucial for a company like BBQGUYS that deals with seasonal fluctuations. The integration of this technology helps BBQGUYS predict the availability of both raw materials and finished products, ensuring that they can meet customer demands without overstocking. Forecasts are fine-tuned with additional qualitative data, including minimum order quantities (MOQs) and specific freight agreements, resulting in more precise inventory planning.

Efficient Manufacturing Capabilities at PCM
PCM’s quick-response production capabilities play a central role in BBQGUYS’ inventory strategy. Automated bending machines and robotic cells allow PCM to scale up production rapidly, especially for small, custom runs of products. This efficiency is key when responding to promotions or sudden increases in demand, allowing BBQGUYS to reduce the need for large inventories while maintaining the ability to deliver quickly.