Enhancing Demand Forecasting Accuracy to Minimize Stockouts in a Retail Chain
Industry
Retail
Challenge
A retail chain faced stockouts due to fluctuations in demand from price changes and promotions, which were not adequately factored into their planning, resulting in missed sales and customer frustration.
Results
By implementing Forts’ demand forecasting, the retailer improved demand accuracy by 20%, significantly reducing stockouts and enhancing overall inventory management.
Key Product
Forts - AI-powered demand forecasting platform.
About the Retail Chain
The retail chain is a well-established supermarket with multiple locations, offering a diverse range of products. They face stockouts due to fluctuations in prices and promotions driven by the marketing team, which complicates the estimation of future sales. This inaccuracy has resulted in lost sales and a poor customer experience.
The Challenge
The retail chain faced frequent stockouts due to fluctuating demand from price changes and promotional campaigns. These changes, driven by the marketing team, were not effectively communicated to inventory management, leading to inadequate forecasting. Consequently, the retailer struggled to align inventory levels with consumer demand, resulting in lost sales and frustrated customers. To enhance operational efficiency and improve the shopping experience, the chain urgently needed a more accurate inventory management solution.
The Solution
To address the challenges of stockouts and inventory mismanagement, the retail chain used Forts’ demand forecasting platform. This advanced solution provided accurate insights into consumer demand by leveraging historical sales data, product attributes, and future factors like price changes and promotions.
With this information, the retailer could better anticipate fluctuations in demand and adjust inventory levels accordingly. The platform also enhanced alignment between the marketing and inventory teams, ensuring that promotional strategies matched stock availability. This proactive approach allowed the retailer to maintain optimal inventory levels, significantly reducing stockouts and improving overall customer satisfaction.
The Results
The retail chain improved its demand forecasting accuracy by 20%. This enhancement significantly reduced stockouts, allowing customers to find the products they wanted and improving their overall shopping experience.
As a result of more accurate demand predictions, the retailer experienced increased sales, as customers were less likely to encounter unavailable items.
Contact Our Team to Learn More About Forts
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