Predictive Forecasting: Increase EBIT in retail with AI-supported demand planning

Predictive Forecasting

Increase EBIT in retail with AI-supported demand planning

Predictive Forecasting

Increase EBIT in retail with AI-supported demand planning

In the last two years, uncertainty has increased significantly for the trade: Supply chains are not robust enough or keep breaking down, employees in logistics drop out. Ultimately, goods are not available and turnover is lost. At the same time, consumers increasingly value security of supply, coupled with flexibility and a favourable price. This is reflected in their shopping behaviour: new business models such as "home delivery" within ten minutes or click-and-collect solutions are putting pressure on the market. AI-based solutions help companies to forecast demand more accurately, have goods available exactly and thereby increase EBIT.

 

Traditional demand planning and models reach their limits

To be prepared for short-term fluctuations, retailers must be able to predict current and future demand more accurately. Ideally, this forecast should be accurate to the hour and to the product - right down to product criteria such as the size and colour of a winter jacket. This is the only way to ensure product availability. With AI-supported forecasting solutions, the demand of each shop and online shop can be precisely predicted and thus planned. If an accurate demand estimate is available, the upstream stages along the supply chain should be optimised at the same time. In this way, the availability of products can be reliably ensured in the long term. 

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