reduction in working capital tied to inventory
SKU-level demand forecasts that feed replenishment directly, so planners manage exceptions instead of rebuilding spreadsheets every Monday.
Most forecasting vendors sell a list of exotic inputs. For teams still reconciling forecasts in spreadsheets, half of them cost more than they earn. Here is the honest split.
| Signals we use | Signals we explicitly don't use for lean planning teams |
|---|---|
| Historical sales by SKU and location, 2–5 years where available | Real-time POS streaming. Weekly batch is enough unless per-minute stock decisions are already operational. |
| Promotion flags and discount depth from the ERP or trade-promotion system | Third-party weather AI vendors. The free BOM data is good enough for 95% of FMCG use cases. |
| Seasonality and public holiday calendars (including state-specific ones) | Social-media sentiment feeds. Too noisy, too expensive, and rarely predictive for replenishment decisions. |
| BOM weather data for temperature-sensitive categories | Satellite imagery of competitor car parks. Yes, vendors sell this. No, you don't need it. |
| ABC / XYZ classification to fit method to SKU behaviour | Real-time competitor price scraping. Useful for pricing; noise inside a demand forecast. |
| Supplier lead-time variance and inbound shipment status | Generic "AI demand-sensing" black boxes. If we can't explain the drivers, the planner won't trust it. |
| Stock-on-hand and open purchase orders across DCs and stores | Bespoke deep-learning models trained from scratch. Your data volume doesn't support them. |
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