Retail & E-commerce
SKU-level demand forecasting models that set optimal replenishment schedules, safety stock, and markdown timing — reducing holding costs and stock-out frequency simultaneously.
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Industry overview
Retail inventory optimisation systems that forecast SKU-level demand by location and channel, set automated replenishment triggers, optimise safety stock levels, and schedule markdown timing to maximise gross margin.
At a glance
Retail inventory imbalances — too much of the wrong product, not enough of the right one — destroy margin from two directions: markdowns to clear excess stock and lost sales from stock-outs. Both are driven by demand forecasting errors and replenishment decisions that do not account for lead time variability, seasonality, and promotional effects accurately enough.
We build SKU-location demand forecasting models that incorporate sales history, promotional calendars, seasonal patterns, and external signals. Replenishment trigger automation generates purchase proposals based on forecast demand and supplier lead times — removing manual ordering for the majority of the range. Markdown optimisation models determine the optimal timing and depth of price reductions to clear seasonal or excess stock at maximum margin. Safety stock models reflect actual lead time variability by supplier rather than using average lead times.
Key capabilities
Engagements are scoped to your business context — these are the core capabilities we bring to retail & e-commerce clients.
SKU-location demand forecasting with promotional and seasonal factors
Automated replenishment proposal generation for buyers
Safety stock optimisation using actual supplier lead time distributions
Markdown timing and depth optimisation for excess stock clearance
Slow-mover and dead-stock identification with clearance alerting
ERP and OMS integration for seamless execution
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