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Automation and Modernization of Supply Chain Systems for Large Retailer
  1. case
  2. Automation and Modernization of Supply Chain Systems for Large Retailer

Automation and Modernization of Supply Chain Systems for Large Retailer

n-ix.com
Retail
eCommerce

Identified Challenges in Retail Supply Chain and Data Management

The client is experiencing inefficiencies due to disparate warehouse management and tax calculation systems, with frequent data discrepancies caused by manual data processing. This hampers product tracking accuracy and increases operational costs, especially during high-volume sales periods. Rapid growth through acquisitions has compounded these issues, necessitating a comprehensive modernization initiative.

About the Client

A large-scale retail company experiencing rapid growth through acquisitions, managing multiple warehouses, complex tax and product data, seeking to optimize operational efficiency and reduce costs.

Goals for Enhancing Retail Operations and Data Integrity

  • Develop a centralized tax management solution that aggregates all tax and import/export duty calculations, ensuring compliance and data consistency.
  • Implement a stock reconciliation system that consolidates data from multiple warehouse management platforms to provide accurate real-time inventory status.
  • Redesign legacy gift certificate management to reduce operational costs and improve user experience via a web-based interface.
  • Create an AI-powered fraud detection subsystem for real-time transaction risk assessment to minimize losses.
  • Modernize internal systems' technology stack, optimize database performance, and streamline integrations to support high-volume sales periods.
  • Reduce manual data processing by automating workflows and data synchronization across various platforms, resulting in cost savings and improved accuracy.

Core System Functionalities for Warehouse, Tax, and Fraud Management

  • A unified tax management service calculating taxes and duties for international and domestic transactions, ensuring compliance with relevant customs regulations.
  • A stock reconciliation module aggregating data from multiple warehouse management systems to track product status, location, and loss or defects accurately.
  • A web-based gift certificate system capable of generating, approving, and confirming certificates with a modern UI, replacing legacy PHP systems.
  • An AI-driven fraud detection engine analyzing transaction data in real time for potential fraud, with risk scoring displayed to assist decision-making.
  • Automation of data workflows and synchronization to minimize manual input and discrepancies, supporting high-growth sales periods.

Recommended Technologies and Architectural Frameworks

Microservices architecture for modular and scalable system components
Node.js and TypeScript for backend services
React for frontend development
Cloud infrastructure (e.g., AWS) utilizing serverless functions such as AWS Lambda
DynamoDB or equivalent NoSQL database for resilient, high-performance data storage
API Gateway for secure external and internal API management
Automation tools like CI/CD pipelines with automated testing

External System and Software Integration Needs

  • Warehouse management systems for real-time stock data aggregation
  • Third-party tax and duty calculation APIs to ensure compliance
  • Fraud detection service API (e.g., Amazon Fraud Detector) for real-time transaction analysis
  • Inventory and product management platforms for synchronization and status consistency

Key NFRs Ensuring System Reliability and Performance

  • System scalability to handle high-volume sales during peak periods, ensuring performance remains unaffected
  • High availability and fault tolerance via cloud-based deployment
  • Data security compliance, including secure handling of payment and transaction data
  • System performance optimization to reduce CPU load with targeted metrics (e.g., CPU utilization under 50%)
  • Automated testing and continuous deployment workflows for rapid development cycles

Expected Business Benefits from System Modernization

The project aims to significantly improve operational efficiency, aiming to reduce manual processing and associated costs, with targeted outcomes including a tenfold reduction in operational expenses related to gift management, enhanced data accuracy and consistency, improved system performance during peak sales, and minimized losses due to fraud. Additionally, automation and optimized workflows will enable the client to scale more efficiently and enhance customer satisfaction through reliable product and order data.

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