Price rules and performance
RA Demand Forecasting Services
We take care about your forecasts…
The importance of good forecasts
The ability of a retail organization to forecast demand accurately is the primary condition for optimizing business decisions. The optimization of order quantities, stock levels, or store shipment allocation depends on the aptitude of a retail operator to forecast accurately demand at store/sku level. The optimization of merchandizing initiatives is only possible through the implementation of industry specific causal demand models, where the impacts of price changes, promotions, displays and ads on to future demand can be measured with sufficient confidence.
Demand forecasting is a business process
Although retail organizations recognise the importance of good forecasts, few implement an effective formal process to support it involving suitable resources, skills, methods and tools to ensure the production of accurate and relevant forecasts. Also, little effort is often spent on the systematic monitoring of the quality the different information sources used to build demand models.
Retailers are not good forecasters
The production and management of quality demand models and the generation of accurate forecasts is a specialists’ field, which requires in order to be run successfully expertise in many domains such as statistics, models building, mathematics, data-mining, management sciences and information technology, together with in depth business knowledge of the different retail sectors. However, our experience shows that most retailers fail to get the science and the tools right, sometimes even after investing heavily in hiring statisticians and acquiring complex and expensive software solutions.
Let the experts work it out for you
RA Demand Forecasting Services provide an effective, no risks and cost efficient solution for the production of quality demand forecasts customized to your need. Using our SAAS build solution you will be sure that:
What you have to do
Initially we shall work with your IS and merchandizing teams to help you identifying, collecting and formatting the information sources such as past sales, product information, past and future price, promotions, display and ad information necessary to build the models and compute the forecasts. We shall also agree on the process for channelling data and reports to and from our portal. That is all!
RA demand forecasts production process can be summarised as follows
A Complete service
RA Demand Forecasting Services follow a comprehensive set of processes ensuring that:
A scalable and evolutionary service
Our “Grid Analytics” data processing and model building platform has been designed to scale to the largest retail organization thanks to complying to latest parallel processing design principles and allowing the access to private or public clouds computing network. All data supplied is encrypted.
Benefits & ROI
RA Demand Forecasting Services represent a low cost, no risks, and effective solution for the production of accurate forecasts within a comprehensive, secure process. Accessing RA Demand Forecasting Services require
System Integration requires only the sending and receiving of scripted files using an https based connection. We continuously invest in developing better methods, architectures, models and practices to make RA Demand Forecasting Services the best tool for retail operators. Access to our latest development once tested and validated is available to your organization as part of our service with nothing more to do on your side.
The service is available on a pay as you go basis, where the tariff calculated depends upon
To quantify the benefits of using RA Demand Forecasting Services, we propose to build an ROI analysis table, which will assess and compare the following:
In the ROI table above, section (3) and (4) estimate the inventory costs savings and lost sales reduction gained for every MAPE’ s percentage point drop (i.e. forecast error) obtained. Such analysis, which is typically based on comparing the demand forecast accuracy between the existing “in-house” system/function and RA Demand Forecasting Services, never fail to show that RA Demand Forecasting Services cost less to deploy and run than a “within the firewall” solution, and helps to significantly reduce the inventory holding costs and lost sales by forecasting demand more accurately.
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