INCREASE STOCK AVAILABILITY WITH ACCURATE DEMAND FORECASTING

The client struggled with accurate demand forecasting due to Lumpy Demand* and unpredictable customer ordering schedules. With manufacturing globally becoming increasingly competitive there was a need to bring a data-driven edge to a traditional company. Having an understanding of future demand for every SKU in their inventory would allow them to plan accordingly, and optimize their operations.

*Lumpy demand is a phenomenon encountered in manufacturing or retailing when the items are slow-moving or too expensive

Utilizing AI technologies the client’s sales data was analyzed against 3rd party data sources including the stock market, GDP growth, debt markets, and weather in the analysis to see whether any data points provided an indication of future demand.

The results produced 6-week forecasts across all SKUs in the client’s inventory and achieved an average accuracy across all SKUs of more than 70% which was an impressive result given the sparse nature of the data and lumpy demand. In addition, these results provided insights into uncovering a large driver for the demand for their products.