Peak > Case Studies > Transforming Inventory Management with AI: A Case Study on Speedy Hire plc

Transforming Inventory Management with AI: A Case Study on Speedy Hire plc

Technology Category

Functional Applications - Inventory Management Systems
Sensors - Level Sensors

Applicable Industries

Cement
Retail

Applicable Functions

Sales & Marketing
Warehouse & Inventory Management

Use Cases

Demand Planning & Forecasting
Inventory Management

The Customer

Speedy Hire PLC

About The Customer

Speedy Hire plc is a FTSE-listed equipment rental and support services provider with operations throughout the UK, Ireland, and the Middle East. The company serves customers across multiple industries, including construction, infrastructure, industrial, manufacturing, facilities management, retail, leisure, events, and local trade. Speedy Hire's business model revolves around providing an excellent customer experience, which means always having the right products available whenever and wherever customers need them. The company has a complex network of 3,500 products across 200 depots in the UK.

The Challenge

Speedy Hire plc, a FTSE-listed equipment rental and support services provider, faced a significant challenge in managing its complex network of 3,500 products across 200 depots in the UK. The company's commitment to excellent customer service meant always having the right products available whenever and wherever customers needed them. This was a complex task due to the variety of products, from simple cut-off saws to lighting towers, and the need to forecast not just one-off sales but also the likely duration of hire and expected product condition on return. Furthermore, Speedy had committed itself to a four-hour delivery and collection promise, adding another layer of complexity to its operations.

The Solution

Speedy Hire turned to Peak's Order Allocation and Replenishment applications to optimize their network. These applications, powered by artificial intelligence (AI), provide the asset and logistics teams with a demand forecast for each product and recommend how products should be distributed across the depot network, when to replenish them, and by how much. This AI-driven approach allows Speedy to balance maximizing the utilization of products and maintaining availability for customers. The AI applications also enable Speedy to predict the optimum level of assets to hold at the product and depot level, reducing unnecessary stockpiling by redistributing them around the network to where they're most likely to be needed. This is particularly beneficial at a time when warehousing costs are skyrocketing.

Operational Impact

The use of Peak's AI applications has transformed Speedy Hire's daily decision-making process, building confidence in supply throughout its entire network. The company can now increase utilization, facilitating an improved Return on Capital Employed (ROCE). The AI-driven approach has also helped Speedy reduce unnecessary stockpiling by redistributing assets around the network to where they're most likely to be needed, a significant advantage in a time of skyrocketing warehousing costs. Furthermore, the services provided by Peak, from data science to AI consulting, have added value to Speedy's operations, connecting technical and business users to drive the company's business goals through the power of AI.

Quantitative Benefit

Decision-making time for product allocation reduced from over a week to just one hour.
Achieved 4% savings on inventory each month.
Satisfied 8% more demand across the network each month.