Retail Demand Forecasting

Predictive Analytics & AI for Retail Demand Forecasting

Demand forecasting is the backbone of all retail strategic and operational success. Although retail demand & sales forecasts have existed in many forms for several decades, traditional methods have shown to be obsolete when compared to advanced methods that take advantage of predictive analytics and Artificial Intelligence (AI).

 

Retalon’s goal from day 1 was to provide retailers with the most accurate demand forecast possible to power a unified suite of solutions for critical functions of the business. Our forecast accuracy is first-class, and since 2002 it’s been tested and proven in over a dozen retail verticals.

Advanced AI & Mathematics

Retalon’s demand forecast is powered by world-class mathematics as well as proprietary predictive analytics and machine learning technology.

Perfect combination of Art & Science

Retalon’s business rules enable users to account preferences, constraints, costs, triggers, and more to automate the business and focus on exceptions.

Intelligently account of unique & complex influencing factors

Retalon’s demand forecast accounts for all the influencing factors affecting demand. (eg. seasonality, cannibalization, promotions, size curves and more.)

Technology with real Tangible Results

o Having proactive and insightful visibility into the future, significantly cuts inventory costs while optimizing assortment & fulfillment across the business.

A suite of smart solutions that are powered by Retalon’s forecast

Retalon offers a comprehensive solutions suite for planning, merchandising, inventory management, price optimization, promotions and markdowns.

Proven Track Record with World-Class Retailers

Retalon’s award-winning solutions have been proven to deliver tangible results for a variety of retailers across multiple verticals.

Forecasting Based on True Demand:

 

One of the biggest challenges retailers experience with forecast accuracy is that their current tools and forecasting methods rely heavily on past sales. The truth is that past sales present a very misleading picture of what your past demand was. For example, you may have not sold to your full potential in the past because you run out of stock, or perhaps you’ve artificially inflated demand with a promotion or a price change that will not happen this year. There are many things that change year over year. New versions/styles/models of products, different overall assortment, moving holidays, new stores, different vendor costs, and much more.

 

By forecasting future demand based on past sales, retailers are setting themselves up to repeat past mistakes and lost opportunities into the future. Retalon offers a unique ability to identify true past demand and lost sales in order to build a much more accurate picture of what future demand will look like.

 

Forecasting Designed Specifically for Retail:

 

Retail is a highly dynamic industry with many diverse verticals, different supply chains and operational processes. Relying on a general ‘data analytics or AI’ firms that don’t specialize in the retail often results in lower forecast accuracy, increased exceptions, and the inability to account for critical factors and nuances that influence demand for a particular retail organization.

 

Retalon is the world’s 1st unified predictive analytics and AI platform that was exclusively designed for the retail industry. We empower retailers with superior forecast accuracy because we live and breathe retail. We provide business-specific solutions that were designed for real-life retail business scenarios. Here’s just a sample list of key influencing factors our forecasts account for:

Customer Story Videos

 

Hear directly from retail executives about how Retalon’s demand forecasting and predictive analytics solutions optimize their business. 

All Retalon solutions are powered by our highly accurate demand forecast, providing retailers with proactive recommendations, significant automation, and more consistent workflow. Retalon solutions are integrated which means that each critical function of the business accounts for others in its forecast and decision support recommendations.

Here is an overview of Retalon’s solution platform:

PLANNING:

Financial Planning

Often executed at a category level a financial plan serves as a reference point and the source for other plans. This plan provides all the necessary functionality to build a long term budget, forecast of sales, GM, turns and other important KPIs.  Users are able to review and approve numbers across multiple levels of a management hierarchy to setup financial goals for the next year or a few seasons.

Merchandise Planning

This Plan is based on a long term forecast of demand, and utilizes all the knowledge Retalon’s predictive analytics engine has generated on past sales (including lost sales, promotions, price changes, seasonality, trends, etc) to help users plan future sales, inventory levels, and receipts. This plan is a highly flexible module which enables users to plan sales, markdown and Inventory (or other metrics) by attributes, as well as plan inventory at cost by merchandise type (e.g. Old/New/Current/Running) and much more.

Assortment Planning

One of the most challenging plans to create is an assortment plan that determines how many units of each Style/Color to purchase, and which stores they should go to and in what quantities. Retalon’s Assortment Planning module powered by a highly accurate demand forecast helps you optimize your assortment.

Pre-Season Planning

This module allows users to plan optimal initial pre-allocation quantities, accounting for actual need of each location, plan-o-gram restrictions, desired assortment, inventory availability, and business rules

In-Season Planning

This plan type allows users to monitor all applicable metrics in-season, compare them with actual weekly performance, and adjust as necessary.

Open-to-Buy

Retalon allows users to build an Open-to-Buy plan at Cost, and create purchase orders based on user defined purchase schedule

INVENTORY MANAGEMENT:

Optimal Purchaser

Retalon’s Optimal Purchaser & Order Management solution generates optimal suggested quantities based on a highly accurate demand forecast, and allows users to prioritize orders and account for variety of constrains & restrictions. An easy & smart approach that supports multi-echelon, vendor-to-DC, vendor-to-store replenishment, and much more.

Smart Allocation

Optimize allocation across your entire omni-channel retail business with one click. Retalon’s Smart Allocation solution automatically accounts for performance of each product/location, desired assortment distribution, existing terminal stock, and a wide range of other business-specific factors such as size patterns, MINs, and case/pack requirements.

Auto-Replenishment

Retalon’s Auto-Replenishment system automatically determines shipment quantities and allocates products to locations within an organizational hierarchy. An executed future demand forecast is a prerequisite for the Allocation & Replenishment system to run successfully.

Inventory Transfers

Retalon’s predictive analytics engine analyzes every single influencing factor of a retail supply chain, and recommends the optimal inter-store transfer schedule to move merchandise from stores where it is collecting dust on the shelf to stores where the same products are out-of-stock and in high demand. proactively.

Micro-Merchandising

Retalon offers a full suite of tools that allows users to cluster (group) products and stores either dynamically or based on static criteria. Users can define which products can be replenished at which locations, and set & maintain minimums at either the SKU or higher than SKU levels, as well as manage space and capacities by type (e.g. hanging, liner feet).

Safety Stock Optimizer

“Add stock only when it adds value!” Retalon’s Safety Stock optimizer calculates the necessary safety stock quantity for each product individually based on associated risks (such as volatility of demand, variability in Lead Time, Vendor Fill Rates), an accurate forecast, and company policies (such as desired Customer Support Level)

PRICING, PROMOS & MARKDOWNS:

Price Management & Optimization

Retalon’s Price Management & Optimization module enables retailers to set initial prices, maintain optimal prices throughout the product life cycle, automatically adjust product families to price changes, and more. The system intelligently accounts for many factors such as competitive data, product cannibalization, promotions & events as well as any policies, business rules, or constraints set by the user.

Markdowns & Markup Optimization

Retalon’s Markdown Optimization Module monitors a range of critical variables such as current levels of inventory, sales velocity, past & future events, compares projected performance with business goals/objectives, and uses a set of rules and triggers to automatically recommend optimal price adjustments.

Events & Promotions

Retalon’s Events & Promotions module identifies the true effect of past promotions, and empowers retailers to run successful promotions in the future. Know the best time for a promo, set optimal promotional prices, choose the most effective media types, and more.

Get a personalized demo to learn about Retalon’s Demand Forecasting!