HOW ARE COMPANIES USING IT
Without demand, there is no business. Demand forecasting refers to a scientific and innovative approach for anticipating the demand of a particular commodity in the market based on patterns from historical data and past behaviour, experience, and related external data. It is not based on guess work or prediction but is backed up by evidence and past trends.
Demand forecasting, simplified
Demand forecasting in most organisations usually involves very large Excel files with lots of macros and a small army of frustrated analysts and commercial managers battling with stone cold numbers every single business day. Add a huge amount of organisational tribal knowledge to the problem and the outcome, more often than not, results in overproduced products or sell-outs. Each of these have a domino effect on a number of other functions in the business such as sales and marketing, operations, supply chain, inventory but most importantly, customers’ satisfaction.
Predicting the future accurately is usually impossible but in our experience and a lot of advanced organisations proven cases, machine learning can beat the above mentioned problems most, if not all of the time.
Just imagine a large online retailer such as Amazon.com who sell and ship millions of product SKUs from more than 170 fulfilment centres daily wanted to use traditional (read Excel or similar tools) data processing and forecasting methods. Impossible, right?
Machine learning and big data to the rescue. It’s not just about scale or accuracy in predictions. Speed matters in the business and if you look closely, the typical bottlenecks trace back to inefficient forecasts.
Some of the key benefits of the Forecast model are:
How can we help
The art of forecasting is achieved on Amazon Forecast by combining historical data, such as sales, web traffic, inventory, cashflow, etc with related data, such as holidays, product, descriptions, promotions, etc. It is uploaded into your custom model and the results can be visualised.
At Intellify we believe that spending time and effort in finding and optimising the top five or ten “golden” forecasts of any business pays dividends more than most business process improvement practices. We develop tailor-made solutions to forecast demand so that you can stop guessing your future demand value.