Sector: Large Retailer of B2C consumer goods
Company size: Enterprise Global Retail Company
Performance Area: Forecasting Sales and Demand
Goal: Accurate forecast sales and demand; AI will benefit not just revenue but also logistics of maintaining sufficient inventory.
Challenge: The company needed to forecast its revenue as well as its inventory. The benefits from the revenue forecast are obvious, but accurate inventory forecast equally affects the company. Too low of an inventory will impact sales and customer loyalty. Too high of an inventory creates a space problem that prevents new items to sell. It also creates downward pressure to discount the items in order to move them at a reduced profit or even loss.
Results: Sonasoft ingested data on historical sales, weather information, public holidays, specific promotions, price cuts, etc. Sonasoft then ran multiple algorithms for statistical insights and deep learning. The best benchmarking solution was chosen with an 80 percent modeling accuracy. In addition, Sonasoft was able to reveal which product promotions worked best and which ones did not. Overall, Sonasoft was able to give insights to drive input variables to maximize sales and drive incremental revenue.