Challenge
The fast-growing startup needed a sophisticated forecasting solution
As Sahajan's growth surged in both e-commerce, as well as through existing and new retail channels, so did the amount of cash tied up in inventory. Sahajan Founder and CEO Lisa Mattam knew accurate forecasts were essential to meeting her company's skyrocketing demand while allocating capital smartly.
"When you're a startup, you've got $1 to spend in five places," echoes Charlene Falkenburger, Sahajan's Director of Operations & New Product Development, who leads their forecasting and demand planning efforts. "So, you need to ensure you're not over-projecting your needs and over-investing in inventory you don't need. The same is true for under-investing."
At this point, the Sahajan team had already tested two popular inventory management systems. Both had promised to automatically consolidate the company's inventory data and accurately forecast demand.
However, while the tools saved time consolidating data upfront, their forecasts were unreliable. As a result, the team spent more time fixing the projections downstream than it would've taken to build the models themselves.
"After vetting several solutions, I was under this running assumption that there wasn't an inventory tool available that was sophisticated enough for a company of our size," Lisa shares. "There was seemingly no inventory management solution fit for a rapidly growing startup."
When Lisa found Moselle, she quickly changed her mind.Â
"Whether you're a new brand just starting out or a large global company, you need to nail down inventory management to successfully scale and maintain your business and cash flow." — Charlene Falkenburger, Director of Operations & New Product Development
Solution
Powering real-time inventory decisions with accurate demand forecasts
As Lisa puts it, "Your forecasting tool is only as valuable as the data you put in." So, rather than taking a one-size-fits-all approach, "Moselle went beyond what we'd expect from a service provider and really took time to understand the intricacies of Sahajan's business — from sourcing materials to sales channels."
Using this context, Moselle consolidated all of Sahajan's inventory and sales data into its inventory solution before customizing the platform to fit the skincare brand's unique operational needs. With this real-time view of the business, Sahajan can easily pull AI-generated reports in seconds to inform every decision.
For example, Charlene exports Moselle's "scary-accurate" 12-month forecasts to prepare for the company's weekly production planning meetings. Using the latest lead times and production timelines, the team then works backward to determine the best time to order each component.
This strategy ensures that Sahajan's production cycles happen without delay and that finished goods arrive at their warehouse just in time to avoid a stockout. Equally impressive, despite more than doubling revenue over the last year, inventory levels are nowhere close to 2x inventory levels from a year ago, indicating that the team has been able to free up considerable working capital to empower the team to invest those dollars where they will unlock the most growth.
For instance, Moselle once projected a sudden influx in sales for Sahajan's best-selling Nourish Créme Riche using early warning signals virtually undetectable to a human demand planner. With minimal cash tied up in slow-moving inventory, the team had the funds needed to meet this record-breaking demand. "Without Moselle, we might've missed a significant selling window for our bestseller," Charlene shares.
"Moselle really set us up for success. Now, we have valuable real-time data at our fingertips to inform our purchasing decisions and future production plans without worrying about available capital." — Lisa Mattem, Founder and CEO of Sahajan
Results
Sahajan creates inventory forecasts with 200% higher accuracy thanks to Moselle
With Moselle, Sahajan only invests in the inventory they need to meet their growing demand — no more, no less. This has freed up significant cash flow, boosting the team's operational efficiency:
- 520 hours saved annually on inventory planning
- 200% increase in forecasting accuracy
- 50% increase in free working capitalÂ
Moving forward, Sahajan — which closed their first equity funding round in November 2023 — plans to double down on marketing and expand into retail. With Moselle by their side, the Sahajan team feels confident they'll have the inventory needed to meet this higher demand and unlock growth.Â
"Most founders — myself included — don't have the depth of inventory management expertise that Moselle offers. That's why we back all our inventory decisions with insights from Moselle." — Lisa Mattem, Founder and CEO of Sahajan
