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BABAK
BABAK

BABAK

BABAK is a chain of neighborhood-format stores in Lviv that is opening new outlets. The chain is served by its own distribution center. The chain works with a wide range of everyday consumer goods. The opening of new outlets required a shift from manual inventory planning to a centralized, systematic approach to replenishing stores and the distribution center.
1
distribution center
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Background and Challenges

Inventory and orders were managed manually — in the accounting system and Excel spreadsheets, with two specialists making decisions on order volumes and seasonal peaks.
The chain was actively opening new stores, so the manual approach to order planning required an increasing amount of team resources to keep up with this pace of growth.
As with any scaling chain, demand forecast accuracy directly affected the balance of inventory between stores and the distribution center — so improving this accuracy became one of the priorities.
The challenge was to ensure faster and more accurate inventory decisions in a chain that was scaling at the same time.

Project Goals

01
Automate order generation for stores and the distribution center and relieve the burden of manual planning.
02
Reduce inventory turnover and lower excess stock levels without losing product availability.
03
Improve demand forecasting accuracy, particularly during promotions and seasonal peaks.
04
Prepare inventory management processes for the chain's further scaling.
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Why ABM Inventory

The drive to find an auto-replenishment system was triggered by the chain's scaling and the opening of new stores. ABM Inventory was chosen on the recommendation of market colleagues.

This approach allowed the chain to move from manual control of every single order to systematic inventory management that remains manageable even during active opening of new outlets.

In this logic:

  • ABM Inventory — the core system: based on built-in algorithms for handling goods at storage locations, it is responsible for automatically generating orders for stores and the distribution center based on demand forecasts and replenishment parameters.

  • Separate additional modules — Fresh and PromoTools: Fresh adapts calculations to the specifics of short-shelf-life products, while PromoTools forecasts demand for upcoming promotions and accounts for the increased need during a promotion.

How the Implementation Went

The implementation of ABM Inventory for BABAK took 9 months — from project kickoff to full transition to operational mode, and the system generated its first automatic order after just 4.5 months from the start of work

01
Six people from BABAK were involved in the project: the commercial director, head of the purchasing department, purchasing manager, project manager, business analyst, and a developer; category managers additionally completed training.
02
The system was integrated with the BAS KUP accounting system — to exchange data on stock levels and product movement between stores, the distribution center, and ABM Inventory.
03
Along with ABM Inventory, the separate Fresh and PromoTools modules were connected for handling promotions, as well as Qlik reports for daily analytics.
04
The first noticeable results appeared approximately 6 months after the start, and on June 24, 2026, the implementation was fully completed — today ABM Inventory operates at BABAK in full operational mode.
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What This Looks Like in Inventory:

Stock movement for one SKU in a store

  • Examples from the system's reports for specific SKUs, showing how order behavior changed after the transition to automatic replenishment.

    Starting March 2026, after the transition to auto-ordering, deliveries became regular (marked with checkmarks) and uniform in volume.

Business Results

Key Results

The implementation of ABM Inventory allowed BABAK to move from manual order planning to automated inventory management. The main effect was achieved through more accurate forecasting, order automation, and better turnover control.

Qualitative Changes in Inventory Management

  • Over 100 automatic orders are generated daily, with a team of just two purchasing managers overseeing the entire assortment across all stores and the distribution center.

  • The planner’s morning now starts with Inventory: orders that used to be created manually are now generated automatically by the system in minutes.

  • After connecting PromoTools, the team received help calculating promotion-related needs — these calculations are compared against category managers’ manual estimates.

  • In their day-to-day work, category managers and purchasing managers most often use the LFL analysis, “Reasons for Lost Sales,” “Suppliers,” ABCD, OTIF, Fresh, and “Questionable Stock” reports.

  • Worth noting separately is the planner’s increased confidence in their work and improved communication with suppliers regarding service level.

Iryna Loshchakova
ABM Inventory Project Manager
The project team at BABAK was actively involved throughout the implementation. Their staff took part in resolving every task and provided prompt feedback whenever needed. This helped us successfully adapt ABM Inventory to the specifics of the chain's business processes.
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