We outline the market outlook for demand forecasting and inventory optimization in retail — from investment trends, to leading companies, to recommendations for players in the space.
What is demand forecasting and inventory optimization?
Demand forecasting and inventory optimization platforms utilize sales data and other relevant metrics to improve the inventory planning process.
Artificial intelligence (AI)-based demand forecasting solutions help retailers enhance supply and demand planning, pricing and promotion initiatives, and replenishment efforts. As a result, they have the potential to reduce waste and out-of-stock events and, ultimately, boost the bottom line for retailers across categories.
The rising implementation of e-commerce and omnichannel strategies requires brands and retailers to adopt tools that grant visibility into a more complex inventory flow.
Features & capabilities
Demand forecasting and inventory optimization provide brands and retailers with several capabilities, including the following:
- Demand-driven planning
- Automated replenishment and allocation
- Promotion optimization
- Supply chain collaboration