Forecasting & Inventory Planning

Jung-Hee Oh Data Scientist

Businesses in many industries have a need for a robust and accurate forecasting process as well as a need for good inventory planning. These may be integrated into one process or split up across the organization. We have found that combining the two can create a more efficient process as well as give you a platform for realizing the benefits of improving your business.

There are a variety of forecasting methods that companies with an established process may not be considering, which could open up new possibilities in fitting to their specific data patterns. These methods may include advanced statistical method or even machine learning or predictive analytics algorithms. An improved forecast could then help achieve improved inventory planning, with a more informed approach to lowering inventory levels and stockouts, or achieve higher fill rates.

We have used advanced forecasting techniques to achieve lower forecast errors, including non-traditional ideas such as clustering in order to find the best approach for specific groups of SKUs. On the inventory side, we’ve both helped companies implement off-the-shelf inventory solutions to their data as well as building custom solutions to specific inventory problems.

Simulations of our solutions have helped businesses make the right choice, weighing tradeoffs related to tweaking different parameters. The simulation can also help give planners the confidence that the new methods will work.

Our flexible tool-agnostic approach and subject matter expertise have helped companies solve issues specific to their industry — from handling low volume and expensive aircraft parts to injecting demand variability to the analysis of different products in the paper container industry.