One of the crucial abilities for the retail industry is undoubtedly accurate sales forecasting. Those predictions determine company’s decisions regarding financial planning, inventory management, expansion plans, and others. Retailers use various tested and trusted techniques to determine right forecasts, however it's worth to look at opportunities that the development of advanced technologies offers nowadays.
Most of the companies still base on time series forecasting models - relatively complex, however still basic comparing to possibilities provided by machine learning algorithms.
Among numerous advantages, the use of machine learning results in higher precision of sale forecasts. Although they are regression models, they are generally more complex than other types of models used in this field. One key aspect is that machine learning systems are able to detect patterns which aren't obvious at all, by testing features and variables in combinatorial fashion.
Another advantage is the ability of machine learning technology to lead with systems that are described by models with higher number of variables, that in other types of models (such as time-series models) would be very hard to implement in a computer, due to the heavy and long computations. Besides boosting accuracy of predictions, machine learning technology will produce results much faster.
from the moment of data extraction to final reporting.the whole process can be automizedLast, but not least, thanks to advanced technologies
K1 Digital developed a solution for sales forecasting which achieved precision of more than 95% for 45 weeks of the year. It’s fully automized, allowing users to extract reports at any time. Using machine learning algorithms allowed to build an intelligent system that continues to achieve higher results based on company’s data. The solution is designed for retail, however can be easily adjusted to company-specific requirements.
Data is much more than moving information from one place to another, data is all about the knowledge that can be extracted from it.
If your company needs more precise sales forecasts, get in touch with us to find out how intelligent technologies can help you do it more accurately. Contact us though form at the bottom ot the page or write us an email on: firstname.lastname@example.org.
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