Demand forecasting solution
RELEX’s demand forecasting software takes full advantage of all your data to give you the most accurate forecasts. Integrating seamlessly with your space, assortment, replenishment, promotion, inventory and capacity planning it keeps your forecasts constantly up to date and all your core processes aligned.
RELEX’s demand forecasting software makes your data work for you
RELEX’s combination of outstanding computational power, intelligent algorithms and machine learning allows for optimized demand forecasting that automatically factors in the impact of all known external events, such as holidays, seasons, trends and even weather forecasts, as well as planned changes in your assortment, pricing, store-space allocation, stock policy and promotional activities.
“We’re a lot more capable of forecasting at SKU level, line level and store level than we ever were before”
Don’t just forecast demand, shape it
Demand doesn’t occur in a vacuum. External factors, like weather, have an impact and your demand forecasting needs to take account of them, accurately. Yet, many demand changes are self-determined. By closing gaps in how you forecast and reflect the effects of your own actions, such as planned promotions, in all other facets of your business planning, you can significantly increase forecast accuracy and, even more importantly, ensure your plans are executed coherently.
Optimal demand forecasting
Optimized forecasts for each store or channel, item and day are generated by a combination of optimized time-series forecasting, machine learning and efficient use of planning data.
Specially-designed tools and templates make planning and managing situations such as promotions, product ramp-ups & ramp-downs, seasons, holidays & trends a lot easier.
As upstream forecasts build on the regional depots’ or stores’ order forecasts, all data about end-customer demand and planned changes in the network is included automatically.
Robust machine learning
The system automatically sends alerts and provides alternate forecasts whenever the most advanced machine learning forecasts show signs of overfitting or ‘forecast-nervousness’.
Support for multi-channel models, such as buy online and pick-up in store. Sales can be credited to the selling channel while forecasting replenishment for the supplying location.
Flexible editing of forecasts
Demand forecasts are always available on a store/channel and day/item level, but users are free to edit them at any level of granularity or aggregation and by custom groupings, such as search results.
RELEX’s advanced demand forecasting software can easily calculate per item/store/sales-channel for millions of SKU’s, hundreds of days ahead.
The sharing of demand or purchase forecasts with suppliers can be automated and partners can be invited to develop forecasts in collaboration with your planners.
Highlighted features of RELEX’s demand forecasting software
Better promotion forecasting with richer data
Promotions matter in retail, yet they are notoriously hard to forecast as so many things can affect the results. Our demand forecasting software uses multi-variate regression to analyze a wide range of factors, such as timing, product and campaign type, marketing effort, in-store display, and pricing strategy to identify the best forecasting approach for each promotion, item and sales channel or store. The resulting promotion forecasts are routinely tens of percentage points more accurate than those using simpler approaches based on average historical uplifts.
Machine learning captures the impact of weather
Weather can have a huge impact – a hot weekend will cause sales of barbecue items and drinks to rocket. Our demand forecasting software integrates with weather forecast providers to take in up-to-date weather forecasts for every location. It uses machine learning algorithms to analyze the impact of different weather variables on the sales of each item and updates sales forecasts accordingly. To avoid the risk of forecast-nervousness and to allow for informed planning decisions, a baseline forecast calculated without weather forecast information is always available and the user can choose which forecast to apply.
New product introductions
In retail, thousands of new items are introduced every year, and you need to be able to generate good forecasts for all of them – for each store or sales channel. Manual forecasting methods and approaches based on manually setting reference items for new products are rarely adequate, so RELEX has built an auto-reference model that automatically identifies the best available reference product for each new item, based on attributes such as price point or brand. To further improve forecast accuracy, a ramp-up profile modelled based on past introductions can be applied. Read our Measuring Forecast Accuracy: The Complete Guide where we explain the facets of forecasting more extensively.
RELEX uses machine learning abilities to include airport passenger numbers into the forecasts so that WHSmith can use airport traffic figures to predict demand.
Lumene, the leading manufacturer of skincare and cosmetic products in Finland, utilizes RELEX for more efficient sales planning bringing remarkable improvements.
“It’s great to have found a solution provider that is eager to tackle new challenges head on. When we mentioned the opportunity to use airport traffic numbers, the RELEX team was quick to find an innovative way to utilize this data in our demand forecasts.”
– Jag Banwait, Merchandise Controller, WHSmith
Would you like to know more?
We are happy to discuss your retail optimization needs further, and show how sharpening your demand forecasting and planning would streamline your daily operations.