Assortment Management and Demand Forecasting

Optimise production, sales, storage and logistics through demand forecasting.

Ordering or producing excessive quantities leads to unnecessary storage costs when products are not taken up quickly by customers. On the other hand, if a retailer orders too little of a product that is in high demand, this not only results in loss of turnover but also irritates prospective customers. Shortfalls in assortment planning can cause permanent damage to customer loyalty.

Precise forecasting of demand and sales quantities for individual products through the use of intelligent real-time analysis will prevent both surplus and short inventories. Forecasts also ensures that goods are available at the optimum price, that inventories can be dynamically adapted to marketing plans and that the effectiveness of promotions can be assessed more accurately (advertising campaigns, seasonal specialities, etc.)

You'll will get the answers to the following questions:

• Which factors influence the demand for the item offered?
• Which products demonstrate a similar "seasonal behavior"?
• Which products will have a high demand affinity in the future?
• How will demand behave when new products are introduced?

The RDE | Assortment Planning module automates the planning process directly in the process pipeline and provides process-linked forecasts and recommendations about merchandise and product quantities.

Real-time analytics employing innovative mathematical techniques take into account historical transaction data, reference data (e.g. information about the weather and demographics) and time parameters such as public holidays and school holidays. The resulting forecasting models can be used to process both current and future product data.

These forecasting models deliver high quality predictions and can be produced at both the product and branch levels.

By using techniques from the emerging field of reinforcement learning, it is also possible to rapidly identify changes in sales patterns and to correspondingly improve the quality of the forecasting model in real-time.

prudsys AG offers highly innovative approaches to assortment forecasting alongside a wide range of Data Mining services such as category management, master data consolidation, master variant building and duplicate analysis.

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