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Production AI · Part 5 of 5

How a $34M Retailer Cut Replenishment Exception Preparation by 67% Without Replacing Core Systems

A $34M omnichannel retailer had its AI strategy, processes, knowledge and connectivity in place but no production AI. EIC built the execution layer that put 4 operating areas into production on existing systems, with people keeping consequential decisions.

Operational profile

Omnichannel retailer with a robot-assisted central warehouse

Privately held U.S. specialty retailer selling branded footwear, casual apparel, accessories, care products, and seasonal merchandise through 6 stores, one owned eCommerce storefront and one external marketplace: $34.0M annual net sales and 126 regular employees. The remaining step was to turn the foundations already built into production AI execution.

Part 5 of 5 at the same retailer, built on the strategy, processes, knowledge and connectivity of the first four parts. Read part 1: the AI investment strategy →

Operating systems
NetSuite, Shopify Plus / Shopify POS, a NetSuite WMS, ShipStation, Loop Returns, Gorgias, SPS Commerce, Microsoft 365 / SharePoint / Teams, Power BI and Excel-based working models
Warehouse robotics
HAI Robotics HaiPick System 1 and HaiQ in the central warehouse
Foundations already built
11 controlled knowledge collections and reusable business-level interactions across the operational systems
The challenge

The approved designs were not yet production systems

The retailer had moved beyond isolated AI experimentation. What remained was the difficult step between design and operation: production work still required orchestration, workflow state, deterministic controls, approvals, exception handling, and reliable execution across multiple systems.

People still operated the AI

Employees initiated steps, assembled context, interpreted outputs, decided what happened next, and moved work between applications

Four execution modes needed

Some work needed assistants, some deterministic automation, some supervised agentic execution, and some explicit human decisions

No room for a stack per use case

A two-person IT & Business Systems team needed reusable architecture rather than a different technology stack for every use case

What we found

Production needed more than model access

System access was not business authority

An API or MCP write capability could not automatically give AI permission to make consequential commercial or operational decisions.

Workflow state and recovery were missing

Production systems needed to know what had completed, what was pending, what had failed, and when a person had to intervene.

The warehouse needed a hard safety boundary

AI could support warehouse business decisions but could not control robot movement, routing, traffic logic, or safety functions.

The solution

One execution layer for 4 production AI solutions

Each process step used the execution mechanism appropriate to the work. Deterministic logic handled what had to be exact. AI handled what required interpretation.

Before
  • Employees used AI as an isolated productivity tool
  • Employees collected information, operated AI step by step, moved outputs between applications and reconstructed routine work state manually
After
  • Employees or operational events initiate work, and an assistant, deterministic workflow, or supervised agent maintains execution state
  • Routine execution progresses automatically where authority allows it; consequential decisions stop at explicit human checkpoints

One architecture for every use case

EIC implemented a common execution architecture so each use case did not require a separate AI stack.

Python served as the principal custom-development language, Microsoft Agent Framework managed orchestration and stateful execution, and OpenAI models provided language reasoning and interpretation.

The foundations already built were reused

The production applications consumed the same 11 governed knowledge collections and the same source-authority and access model, and production workflows used the AI Connectivity layer instead of integrating independently with every application.

Tested as a process, not as a model

Production readiness was evaluated as end-to-end process behavior, not simply model-response quality: source selection, retrieval relevance, tool choice, unauthorized-action prevention, workflow completion, escalation, latency, and operational cost.

Key design principle

A technically available write operation was not treated as permission to execute a business decision

Only after approval could governed tools update permitted purchasing or replenishment records and submit approved WMS actions.

The first production wave

4 operating areas, 4 execution patterns

01

Merchandise planning and replenishment

A supervised agent assembles demand, inventory, inbound supply, purchasing, supplier, seasonal, promotion and planning context before planner review.

02

Customer service

A supervised agent turns order, fulfillment, shipment, return, customer-history and approved-policy context into a prepared service package.

03

Returns and reverse commerce

An automated workflow combines return state, order context, inventory demand, approved policy and recovery criteria before disposition or escalation.

04

Warehouse and fulfillment

An AI assistant with voice and text interfaces prepares exception context, while the WMS and HaiQ remain the execution authorities.

Architecture

Which work runs on rules, which on AI, which with people

Work areaExecution methodWhy
Identifiers, calculations, thresholds, exact matching, policy tests, validations, permissions, state transitions, and write gatingDeterministic automationDeterministic logic handled what had to be exact.
Semantic retrieval, synthesis, exception interpretation, contextual explanation, drafting, and bounded recommendationsAI executionAI handled what required interpretation.
Inventory commitments and overrides, exceptional customer compensation, material write-offs, significant warehouse exceptions, financial judgment, and policy exceptionsHuman authorityHuman checkpoints retained accountable authority for consequential decisions.
Business impact

Faster resolution across 4 operating areas

67% less exception preparation

Exception-context assembly decreased from 18 minutes across four to five application views to 6 minutes in one AI-assisted review workflow, while inventory commitment remained a human decision.

28% faster customer-service resolution

Order, fulfillment, return, interaction, and approved-policy context was assembled before specialist action.

34% faster fulfillment-exception resolution

Operational context and recovery information were prepared before employee intervention.

72% of the next interactions reused

72% of the interactions required by the next two automation initiatives reused an existing connector, authorization pattern, or business-level interaction.

0 core systems replaced

No core ERP, commerce, WMS, returns, service, or robotics platform was replaced solely to implement production AI.

The result

The retailer now had a reusable development and operating pattern for turning its prioritized AI roadmap into additional production capabilities without restarting architecture, knowledge preparation, connectivity, and governance from zero for every initiative.

The service behind this storyAI Process Automation →

Keep reading

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How a Regional Retailer Cut Automation Design Effort 42% by Making Its Processes Explicit

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27 sources classified by authority, owner and retrieval method, and 11 governed collections instead of one corpus, before committing to a large retrieval platform.

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Your AI strategy should end in working systems, not another backlog of pilots

EIC can help identify the first production workflows, reuse the process, knowledge, and integration foundations you already have, and build the AI execution layer required to put them into operation.

On the call
We find the first workflows ready for production AI
We separate what can run on rules from what needs a human decision
We show the assumptions behind every number so you can check them