Demand Forecasting with AI

Demand forecasting, also known as demand prediction, tries to understand and predict customer demand to optimize supply decisions by corporate supply chain and business management. 

Accurate demand forecasting can benefit the business in many aspects, such as a higher fulfillment rate, shorter cash-to-cash cycle, more working capital, and higher profit margins.  

On the contrary, with inaccurate demand forecasting, brands will either have too much inventory for unpopular items (overstock), which leads to discounting the product, sometimes liquidations; or have too little inventory for popular items (understock), which mean they are leaving money on the table. 

Traditional supply chain predictive analytics use statistics to do forecsating, such as regression. This is most commonly done with Excel. That's why you will see many job postings for inventory planner/buyer roles require excellent Excel skills. 

Unlike statistics, predictive algorithms using Artificial Intelligence can understand and learn the corelations among many different features, and apply the learning to never seen senarios. 

In the case of forecasting the demand for new and never seen products, Artificial Intelligence based algorithms have advantage compare to statistical approach. 

First, we collect all the revelent data that may affect the demand, such as product data, historical sales, fashion trend, weather data and maco economic data. 

Then, we supply the information to mutiple pre-trained Artificial Intelligence models based on product category. These models will learn from the training data and be fine tuned to your brand. 

After that, we do multiple testing to select the models that satisfy accuracy and robust requirement. The winner will be used to generate forecast. 

In addition, the models will be re-evaluated and calibrated once the demand data becomes avaliable. 

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You can send us an email at [[email protected] ] with brief information about your band. And our team will be in touch shortly. 🤗

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As a young startup, questions are always welcomed and we are always seeking supporters and believers to help us achieve the mission. 

You are more than welcome to write up your question and send it to [[email protected] ] Our team will do its best to respond! 😉