Our client is a retailer well-known for their affordable, personalized, and tasty products. However, the customer count was slowing down due to the COVID-19 crisis. Besides, the difficulty in data collection proved a great hindrance to improving product quality. Furthermore, the complicated situation resulted in market demand fluctuating wildly, retailers therefore could not forecast necessary stock quantities and the sales continued to decline. This post introduces a successful case study using AI for demand forecasting and planning.
Using AI for demand forecasting and planning with high accuracy
Demand forecasting is not simply a task of imitating trends, but analyzing a huge amount of data (e.g. customer behavior patterns, preferences, future trends, etc.) and drawing final conclusions. VTI has developed an AI application that is able to help predict market demand and order quantity with an impressively high accuracy, based on order history and product information.
After 3 months of implementation, positive results came one after another. Sales increased by 7-10%, and production costs were reduced by optimizing order volume and production volume. Market demand predictions are provided only in a short time by AI, fervently supporting product development and improvement. The application helped cultivate prospective customers as well as existing customers while optimizing prices, reducing operation costs, and increasing profits.
AI is a shrewd assistant
The client very much looked forward to AI-based applications. “The changes in the times from 2019 onwards have been so unpredictable that we may have been left behind if we stayed entrenched. We will therefore focus on promoting digital transformation in the future”.
Overcome future difficulties with AI for demand forecasting and planning
VTI provides one-stop software development solutions for digital transformation and business growth by utilizing cutting-edge technologies such as AI, and retail know-how. Our one-stop solution Retail X consists of five solutions customized for retailers and stores:
- StoreX: A solution to digitize and optimize stores for a better in-store experience. For example, faster payments with automated check-in with AI facial recognition cameras and digitized invoices.
- PromoX: A solution to promote sales and marketing with a focus on increasing sales. For example, a sales forecasting function to plan sales marketing campaigns and other tools to manage those campaigns.
- MicroStoreX: A POS system that automates and digitizes payment processes and a management system that tracks receipts and shipments.
- LogiX: A system to manage sprint chains. For example, Smart inventory management with WMS.
- WFMX: A solution that digitizes manual tasks like scheduling, reporting, data entry, and more.
VTI – Innovation Technology Value
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