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# Lafayette Plug & Play

Slide 1

Hello. We are Flowlity. We reduce retailers' out-of-stocks and overstocks with artificial intelligence and by connecting with their suppliers.

Slide 2

Let's start with the size of the issue. Do you know how much money is lost every year in retail due to a combination of overstocks and out-of-stocks?

Slide 3

Almost 2 trillions, which is roughly the GDP of a country like France. Stocks are not positioned at the right place at the right time.

Slide 4

The question is why ?

Well, there are three reasons :

- Today's software are not reactive enough : you reconsider once a week your plans. But a lot can happen during this time.

- Traditional solutions are considering suppliers as black boxes. However, several retailers told us that by just seeing the suppliers stocks they could reduce their stocks by 30%. Still this information is not used in existing solutions.

- Finally, all solutions are assuming demand and supply follow a normal law. But this is often not the case.

Slide 5

Well, at Flowlity we believe that retailers suffer because they are planning in silos. We talked to Amazon. It seems they do not face too much those issues. Why? Because they control and have complete visibility on their extended supply chain. We want to bring Amazon supply chain efficiency to all retailers.

Slide 6

Our solution is using data from manufacturers and artificial intelligence to better position stocks and replenishments. We sense risks in real-time both on the demand and the supply using machine learning. We then give recommendations to planners about how much and when to order to their manufacturers.

This was not possible before but it is possible today. With the rise of NFC and RFID, we have real-time information and of better quality than ever before. And companies have put in place EDIs and portals to share information, but they are not using it for planning.

Slide 7

So, we use those innovations and we automatically adjust stocks across several companies in an optimal way.

Other startups are positioning stocks across all stores. Flowlity tackles the issue on several echelons : from the manufacturers to the stores. This is the only way to capture not only demand but also supply disruptions.

Slide 8

We break silos and it will reduce working capital, eliminate wastes and shortages. With only our first prototype, we saw improvements in working capital and shortages by 30%.

Slide 9

With AkzoNobel and Leroy Merlin, we have planned a pilot in Poland where we are targeting 30% inventory and wastes reduction. AkzoNobel is the world leader for painting. Paint collections are changed every year and unsold products are scrapped or discounted. This is a huge loss and a very inefficient situation because both actors are planning in silos. We estimated that with our pilot, we can save up to 300k€ of working capital and scrap.

We are also working with other multi-billion companies like Saint-Gobain.

Slide 10

To succeed, we need two critical skills:

1. Handling vast amount of data and scale machine learning models- Karim has been doing just this at Criteo and Axa.

2. Slide 11 And we need deep supply chain planning knowledge to build and sell the solution. I have worked 7 years in 3 different companies at different positions.

Slide 12

We are already backed by Entrepreneur first, who invested in our company. We also launched our firsts pilots.

Slide 13

We are Flowlity, onboard with us in our ambitious journey to solve stock issues in retail once and for all.