Electronics Brand Solves ₹45L Stockout Problem

The Challenge

A consumer electronics D2C brand specializing in mobile accessories and audio products was facing a frustrating paradox: their warehouse was always full, yet their best-selling products were constantly running out of stock. Customers would land on product pages only to see "Out of Stock" messages on the exact items driving most of their traffic and marketing spend.

The problem was especially acute during peak hours—evening and weekend shopping periods when traffic surged 3x above baseline. The operations team would check inventory in the morning, see comfortable stock levels, and then watch helplessly as popular SKUs sold out by mid-afternoon. By the time emergency restocking happened, the sales window had passed.

The brand estimated they were losing ₹8-12 lakh monthly to stockouts on their top 20 products alone. But the real cost was higher when factoring in the wasted marketing spend driving traffic to out-of-stock pages, damaged brand reputation, and lost customer lifetime value from first-time buyers who bounced to competitors.

Their inventory management was based on simple reorder points: when stock hit a certain level, they'd place an order with their Chinese suppliers. The problem was that these reorder points had been set 18 months ago and never updated to reflect current demand patterns or actual supplier lead times.

The Discovery

TrueLens deployed our Inventory Intelligence analysis to understand the full picture of stockout causes. What we found was a cascade of interconnected problems, all stemming from outdated assumptions built into the inventory system.

We mapped 12 months of demand data against stock levels and identified clear patterns: stockouts were concentrated in specific products during specific time windows. The brand's top-selling wireless earbuds, for example, stocked out every Sunday afternoon during football season—when customers were shopping for audio accessories to enhance their viewing experience.

The actual supplier lead times were a revelation. While the system assumed 21-day lead times, our analysis of actual PO-to-delivery cycles showed variance from 18 to 42 days, with an average of 31 days. The difference between assumed and actual lead times meant orders were being placed a full week too late.

The Solution

We implemented a comprehensive inventory optimization system with dynamic, data-driven parameters:

• Dynamic reorder points: Replaced static reorder levels with dynamic calculations incorporating rolling demand forecasts, day-of-week patterns, promotional calendars, and actual lead time variability.
• Lead time intelligence: Built a system to track actual lead times by supplier and product category, automatically adjusting reorder timing as conditions changed.
• Demand spike alerts: Created automated alerts for unusual demand velocity, flagging when products were selling faster than forecast so the team could react in real-time.
• Pipeline visibility dashboard: Built a unified view showing current stock, incoming shipments, and forecasted demand—giving the team true visibility into future stock positions.
• Safety stock optimization: Implemented product-specific safety stock levels based on demand volatility and service level requirements, rather than a one-size-fits-all approach.

We also helped the brand establish backup suppliers for their top 10 products—local distributors who could provide emergency stock within 3-5 days at slightly higher costs, acting as insurance against stockouts during demand spikes.

The Results

The impact on product availability and revenue was immediate and significant:

Beyond the direct revenue recovery, the brand saw significant improvements in operational efficiency. The operations team now spends 60% less time on inventory firefighting and emergency orders. Marketing can now confidently run promotions knowing products will stay in stock throughout campaigns.

The conversion rate on product pages improved by 12% simply because customers could actually buy what they came looking for. Customer satisfaction scores increased, and repeat purchase rates improved as the brand became known for reliability.

Perhaps most importantly, the brand now has a systematic approach to inventory management that scales with growth. As they expand their product catalog and enter new categories, the same principles and systems will ensure optimal stock levels across their entire range.

"We used to think stockouts were just part of running an inventory-heavy business. TrueLens showed us they're completely preventable with the right data and systems. The ROI was obvious within the first month."

— Operations Head, Electronics D2C Brand