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[GCP] Optimizing Stock Levels with AI

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Written by Vipul Chhabra

Use AI-powered stock optimization to automatically calculate and maintain the right minimum and maximum stock levels for every SKU — so you always order the right amount at the right time.


GelatoConnect Procurement (GCP) uses minimum and maximum stock levels to decide when and how much to reorder for each SKU:

  • When a SKU's current quantity drops to or below its Minimum Stock level, GCP flags it as low stock and recommends placing a replenishment order.

  • The recommended order quantity brings the stock up to the Maximum Stock level.

  • Getting these two numbers right is critical — set them too low and you risk stockouts; set them too high and you tie up cash in excess inventory.

  • GCP gives you two ways to set these levels: manually, or using AI-powered optimization.


Option 1 — Update Min/Max Stock Manually

You can update the minimum and maximum stock levels for any SKU at any time directly in the inventory table.

  1. Navigate to Procurement → Inventory.

  2. Find the SKU you want to update.

  3. Click on the Min Stock or Max Stock field for that SKU.

  4. Enter the new value and save.

This is quick and easy for individual SKUs where you know the ideal stock levels from experience.


Option 2 — AI Stock Optimization (On-Demand)

For SKUs where GCP has sufficient stock consumption history, you can use AI to calculate the optimal min and max stock levels automatically. The AI/ML model analyzes your consumption patterns and recommends levels that balance availability against excess stock.

How to use it

  • Go to Procurement → Inventory.

  • Select the SKUs you want to optimize. You can select individual SKUs or use Select All to choose an entire category at once

  • Click the AI Stock Optimization button.

  • GCP runs an AI/ML query in the background and returns recommended min and max stock values for each selected SKU.

  • For example, for a 15-ounce White Mug, the AI might recommend a minimum stock of 234 units and a maximum stock of 351 units — based on your actual consumption data.

  • Review the recommendations. When you are satisfied, click Apply Changes. All the selected SKUs are updated at once.

💡 Tip: Select SKUs from the same category (e.g., all your Mugs) to batch-optimize them in one go. The AI works best when it has consistent consumption history for the product type.

📝 Note: AI recommendations require sufficient consumption history. For brand-new SKUs with little or no order data, set the min/max levels manually until enough history has accumulated.


Option 3 — AI Stock Limits Auto-Update (Fully Automated)

If you want GCP to keep your stock levels optimized continuously — without you having to select SKUs and click Apply Changes each time — you can enable automatic AI stock limit updates for specific product categories.

Once enabled, GCP will periodically recalculate and update the min and max stock levels for every SKU in the selected categories, fully in the background.

How to set it up

  • Navigate to Procurement Setup → Order Fulfillment.

  • Find the AI Stock Limits Auto-Update section.

  • Select the product categories you want GCP to auto-optimize. For example, select Mugs and Apparel.

  • Click Save.

That's it. From this point on, GCP will automatically keep the min and max stock levels up to date for every SKU in those categories. No manual intervention needed — the AI continuously recalculates based on your latest consumption data.

💡 Tip: Start by enabling auto-update for your highest-volume categories (where consumption patterns are most predictable). You can always add more categories later as your data builds up.

Note: You can still manually override any individual SKU's min/max values at any time — manual edits take precedence until the next auto-update cycle.

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