Use Case
Demand Forecasting
Forecasting demand with high accuracy is the key to running any business efficiently. AI-based demand forecasting techniques enable the business to maintain the right level of inventories and at the same time free up working capital. By accurately forecasting future demand, businesses can plan ahead and reduce the risk of stock outs thus full-filling customer orders on time and delivering an excellent customer service.
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Decrease warehousing cost by
10-40%
- Reduction in lost sales
- Reduce error in supply chain networks by up to 50%
Challenge
Demand forecasting has been done in very traditional manner by either human intuition or past demand and company’s perceived growth or decline. This sort of forecasting does not take into account several real-world uncertainties including variability in demand, supplier delivery times, quality issues, production line disruptions and the list goes on. Even when all of this data is available, it is very difficult for humans and rule based software to find correlations and patterns and perform accurate future forecasting.
The Process
Our AI system takes vast amount of data from different sources. This includes past sales data, supply chain data, macro economic data etc. and learns correlations to accurately predict future demand. We look at different Machine Learning and optimization models such as time series models, regression models and develop the system with the one that is most accurate and serves the business needs well.
Technical Bit
Our forecasting engine uses a range of different machine learning and optimizing methods for predicting future demand. These models are trained using our proprietary algorithms. They take vast amount of data from different sources and predict future demand levels and give recommendations on the optimal level of stocks for different products.
