The Fundamentals of Modern Demand Forecasting

3 key principles for a rapidly changing world

Historically, retail forecasting has been a static input into a manual process for sales operations and supply chain management. Consumer goods companies and their retail partners created forecasts for predicted sales (or, in many cases, sell-in), updated them on a quarterly or, at most, monthly basis, and then made decisions accordingly. Due to how time-consuming and slow the process was, forecasts were not revisited until it was time to evaluate results at the end of the quarter—too late to make any meaningful corrections.

In today’s fast-moving retail environment, this old mode of forecasting is no longer sufficient for brands that want to succeed and thrive. Instead of an isolated, one-time exercise, forecasting now needs to be a process that happens continually, providing critical, real-time input for decisions across the organization.

In this guide, we’ll cover:

  • The three key principles of mission-critical forecasting: an integrated approach, a transparent methodology and actionable results
  • How industry practices have evolved in the world of big data
  • And how to put the three key forecasting principles into practice at your organization

Related resources


Video

Retailer POS Forecast Dashboard Demo Video

Watch Alloy.ai’s POS Forecast demo: demand-sensing forecasts, forward-looking WoS, weekly backtesting, and exports to planning systems to prevent stockouts.

Watch
Video

Collaborative Replenishment Dashboard Demo Video

Watch the Alloy.ai Collaborative Replenishment demo to see how you can surface current and chronic out-of-stocks and phantom inventory, and align with retail partners to...

Watch
Video

Cross-Retailer Scorecard Demo – Monitoring Inventory & Sales Trends Across Retailers

Watch Alloy.ai’s Cross-Retailer Scorecard demo to compare retailer performance weekly, spot outliers fast, and drill from partner to location to SKU to act fast.

Watch