Demand Forecasting
SaaS Demand Forecasting
Are you overwhelmed by all of the factors and criteria that must be considered when managing your complex demand forecast? You’re not alone and Data Profits’ can help you see into the future and easily manage all these factors through our iKis solution.
1. Demand Sales Clean-Up
A number of factors can corrupt your demand forecast, including dirty data, the weather, market change or anomalies and events. Data Profits’ demand cleansing can ensure you’re prepared to face these challenges. The resulting demand is stored in our data warehouse and applied to our Base+ Demand Forecast engine. Learn more about Data Profits’ demand cleansing.
2. Base+ Forecast Engine
Data Profits iKIS solution uses advanced algorithms to generate product / location(s) (Company, DC, Store and Vendor each) weekly demand forecast based on the demand history. Need a product / store demand forecast, need a product company demand forecast, get all your products forecasted at the different locations from iKIS. Reviewing the demand history and user comments then identifying the best algorithm; Base+ automatically selects the best demand forecast that fits the demand sales and user input. Out of the box averages have been 93% accurate, that means less time managing the demand forecast and more time focused on future events.
Base
- Traditional demand sales
- Comprised of Regular and Lost Sales
- All other sales factors impact the base.
- Example: White crew knit socks are a basic product.
Seasonal Index
- A multiplier based on time of year
- Demand Forecasting impacted by time of year – repeats based on calendar
- Example: in USA, back to school is a season that repeats every year, and certain products have connected selling behavior
Market Index
- Data Profits iKIS only
- Demand impacted by customer trends and patterns, can be measured and quantified
- Example: in the USA, a pop star releases a new CD, the buying public rushes to purchase, and there is an change in demand that will surge and regress over time
Promotion/Event
- Demand can be impacted by price, marketing ad or both price and ad
- Example: a product price is lowered 15%, the product is pictured in the weekly mail ad, and the demand increases
3. Forecasting Math
More than 14 different algorithms and methods are used to find the right demand forecast. We utilize a host of different demand forecasting algorithms and methodologies to give you the most accurate forecast possible. In fact, we automatically and expertly select the most optimal methodology for each individual product and location that we demand forecast.
Our customers consistently see demand forecasting accuracy over 90%.
4. Seasonal and Market Trends
Do sales track on a pattern based on time? If you have sales once a year, once a month, or four times a year, then that’s a seasonal pattern. When sales curves rise or fall and are not based on time or events, then that’s a market trend. iKIS is one of the only solutions on the market that can identify a market trend and calculate the impact to the base demand forecast.
5. Growth Trends and Manual Demand Forecasting
Sometimes you just know what needs to happen.
Things happen in retail: budgets cut, budgets increased, new products, replacement products, one product is broken out into 4 colors and 4 UPC, 4 UPC are going to be sold under one SKU. It can seem complicated, iKIS is ready, tell the system what is happening and provide the list of products and locations, iKIS can automate the rest.
6. New Products: Pattern After, Supersessions, Special Forecast Methods
New Products are critical to the success of your business. We provide the following tools to help you with new products:
- Freeze Forecast
- Block History
- Supersession
- Pattern After
- Special Forecast Methods and Algorithms
- New Store
- New Department
7. Events and Promotions
Tell us when, what type, event detail, product/ location details. iKIS demand forecasting will project the sales and post event, record the impact of the event. Events can be your own, weather, competition, price optimization*, markdowns* and more – limitless possibilities. iKIS can track the events, demand forecast the sales and measure the results, storing the results to use when you repeat the event. Now the system can take the current sales and review from past events to further expand your understanding of what events provide what results – real planning power.