Retail Supply & Demand Prediction with Machine Learning— A Use Case

The Challenge

Forecasting the future is no easy task, especially with ever-changing variables, like seasonal fluctuations. With a wide variety of both predictable and unpredictable factors surrounding supply and demand planning, the Retail Industry tends to rely more on growing trends, past experiences, and intuition. This can lead to forecasting pitfalls, such as excess inventories and poor capacity management, which ultimately hurt the performance of the company. Increasingly, retailers are looking to incorporate more data-driven insights into their demand and supply forecasting tasks. The good news is that most retailers already have a reservoir of data that they can use to more accurately aid them in their supply and demand forecasting tasks. Here is where AI/ML solutions come into the equation.

The Solution

Leveraging AI/ML in their demand and supply forecasting enables retailers to predict and identify changes in demand and customer behavior, to promptly adapt their planning to meet the changes in demand. The vast data that are privy to retailers can be fed into a Machine Learning model, to produce data-driven patterns and insights into their current demand and supply planning practices, for more accurate forecasting.

Simplicity with the AI & Analytics Engine

The AI & Analytics Engine is an important tool in any retailers’ arsenal, particularly in data-driven demand forecasting. When supplemented with relevant information, the AI & Analytics Engine can develop and production accurate supply and demand forecasts, taking into account a multitude of influencing variables.

  • Recurring patterns of demand for particular products
  • The impact of internal business decisions (e.g. headcount allocation or promotions)
  • The impact of external factors (e.g. seasonality)
  • Identification of “unknown” (i.e. unrecorded) factors by studying overall historical trends
AI & Analytics Engine — No-code AutoML Tool
Demand prediction made easy with the AI & Analytics Engine

Benefits of an ML approach with the AI & Analytics Engine

  • Anticipate adverse or positive short-term shopping trends
  • Make internal business decisions based on relevant data-driven insights
  • Maximize sales and staffing productivity
  • Manage demand effectively and improve customer satisfaction.

Ready to start making data-driven ML-powered supply and demand decisions? Book in a call with us and we can get you started today!

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