Demand Forecasting
- Increase in-stock rates
- Reduce investment in inventory
- Improve order fulfillment
Demand forecasts are at the root of TrueDemand’s unique capabilities to proactively prevent lost sales, improve replenishment and drive operational effectiveness.
TrueDemand has proprietary algorithms for obtaining the best possible forecasts at the daily, product-location level. The forecasting methodology accounts for seasonal and day-of-week effects, as well as temporary demand fluctuations due to price changes or promotional activities. Multiple forecasting models, including econometric and multi-causal models, are used to capture random and event-driven demand variations. The final forecast model that is used for a particular product-location combination is automatically chosen from a candidate model pool based on the best forecast performance over time.
Forecasting slow moving products poses a particular challenge due to the sparseness of the demand history and high relative demand variations. TrueDemand’s science includes specialized algorithms for these slow movers that have been demonstrated to be substantially more accurate than a leading retailer’s approach.
Use TrueDemand to empower your account team with the industry’s most accurate demand forecast – a foundation for addressing true market demand and for making sales execution a sustainable competitive advantage.
TrueDemand Features
- A combination of traditional, non-causal forecasting methods with causal econometric models to provide a platform for optimal forecasts
- Incorporation of multiple systemic and short-term demand influences
- Adaptive modeling framework where time-varying demand behavior can be captured
- Finely tuned forecasting model parameters based on store and floor inventory positions and out-of-stocks
- True demand potential based on accurate accounting of lost sales associated with inventory shortfall or other operational problems
- Specialized algorithms for highly variable demands such as slow movers
- Active assignment of seasonal profiles at the product-location level using optimal profile clustering
Contact TrueDemand today to learn more. Use our online form on the left, or call 888-809-7855.