Demand history cleansing
Detects stockout periods and estimates lost demand.
Removes one-off orders and data errors.
Separates baseline demand from promotional uplift.
Most forecasts are judged at the total level. A category can hit its monthly number while half its SKUs run out and the other half pile up. The error hides in the mix, by item, location, and week.
Svitla builds demand forecasting software that works at the level where stock decisions happen. Each item and location gets a model suited to its demand pattern. Planners review exceptions, not every line. Approved forecasts flow straight into replenishment, production, and transport plans.
Consumer goods, groceries, and staples where small accuracy gains free up large amounts of working capital.
Fashion, consumer electronics, and seasonal goods where demand spikes around events, launches, and price changes.
Spare parts, industrial supplies, and slow movers where most weeks show zero sales and standard models fail.
McKinsey research finds AI-driven forecasting can cut forecast errors by 20% to 50% and lost sales from stockouts by up to 65%. Most companies are far from that range because their forecasting process, not their math, is the bottleneck.
We back-test your existing forecasts against actual sales by item and location. You see where errors cost the most.
We clean demand data, flag stockout periods, and test model types on each demand pattern. Planners review results before anything goes live.
Both forecasts run in parallel for several cycles. You switch once the new one proves more accurate on your data.
Below, Svitla shares a sample feature set that forms the core of a demand forecasting solution. Each real-life use case is unique, so you should elaborate on the functionality and tailor it to your product range, channels, and planning cycle.
Detects stockout periods and estimates lost demand.
Removes one-off orders and data errors.
Separates baseline demand from promotional uplift.
Tests statistical and machine learning models per item and location.
Back-tests each model on history it hasn't seen.
Re-selects models as demand patterns shift.
Imports promotion calendars and planned price changes.
Estimates uplift and cannibalization from past campaigns.
Models holidays, launches, and local events.
Finds similar past products by attributes.
Uses their launch curves as a starting point.
Updates the forecast as real sales arrive.
Collects input from sales, marketing, and key accounts.
Logs each override with a reason and author.
Measures forecast value added by step and person.
Reports MAPE, bias, and weighted accuracy by item, location, and horizon.
Flags items whose accuracy drops below target.
Ranks exceptions by inventory or revenue impact.
Answer a few simple questions to find out whether you should choose a custom solution or a pre-built demand forecasting platform.
Do your planners build forecasts in spreadsheets?
Does your current tool use one forecasting method for most items?
Do promotions or price changes regularly cause stockouts or excess stock?
Do you sell many slow-moving or intermittent items?
Have you tried a planning tool that couldn't model your demand drivers?
Do purchasing and logistics use different numbers than the forecast?
Would weather, events, or point-of-sale data improve your forecast?
Do you plan to add channels, regions, or product lines in the next two years?
Thank you! We will be in touch soon.
Below, Svitla outlines the ROI factors a demand forecasting solution typically affects. Results depend on your range, service targets, and current accuracy, so model these on your own data.
Working capital is released from slow movers.
Fewer markdowns on overstocked items.
Lower storage and handling costs.
Fewer stockouts on fast movers.
Better availability during promotions.
Higher fill rates for key accounts.
Most items need no manual review.
Planners work high-value, high-risk items first.
Planning cycles get shorter.
Purchasing orders closer to real need.
Production schedules change less often.
Transport and warehouse labor plans stay stable.
Forecasting software fails less often because of algorithms than because of data and trust. Sales history hides stockouts, promotions, and one-off orders. Planners won’t adopt numbers they can’t explain. The build has to solve both before model accuracy matters.
We collect 2 to 3 years of sales, orders, stock, and promotion history, where available. We find stockout periods, missing locations, and changes to item codes. We also measure your current forecast accuracy by item, location, and horizon. That baseline sets the target and the ROI model.
We group items by volume, variability, and seasonality. Each group gets candidate models, from exponential smoothing to gradient boosting. We define the forecast hierarchy, such as SKU, store, region, and channel, and how its levels reconcile.
We test every model on history it hasn’t seen. Planners review results on items they know well. A model that wins on paper but fails planner review gets investigated before launch.
We connect ERP, point-of-sale, and inventory data on a fixed schedule. We build the planner workspace, override logging, and exception queues. Approved forecasts flow back to the systems that use them.
The new forecast runs beside the current process for several cycles. We compare accuracy and bias on live data. After switchover, we monitor drift and retrain models on a set schedule.
A focused forecasting tool for one business unit, with statistical models and ERP integration, typically starts around $40,000. An AI-driven system covering thousands of SKUs across channels and regions, with demand sensing and external data, can reach $250,000 or more. Data quality, integration count, and forecast granularity drive most of the difference.
Want to understand the cost of your demand forecasting software?
Calculate the costAnswer a few questions about your products, channels, and data. We’ll send you a tailored estimate for your demand forecasting solution.
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What our clients say about us
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With 23 years of experience in engineering logistics software and practical knowledge of 10+ industries, Svitla offers full-cycle consulting and engineering services to deliver effective demand forecasting solutions.
We assess your forecasting process, data, and accuracy. You get a build plan, a data readiness report, and an ROI model based on your own inventory and stockout costs.
We design, build, and test your forecasting solution. Our teams cover data pipelines, machine learning models, planner workspaces, and ERP integration.
We audit your spreadsheets or legacy planning tool and plan the migration. We add what the old process lacked, such as model selection per item or demand sensing. Cutover follows a parallel run, then validation of accuracy on live data.
Demand patterns shift with new products, channels, and markets. We monitor forecast accuracy and drift, then retrain models on your latest data.
ERP modules usually apply a few statistical methods across the whole range. They rarely handle promotions, external signals, or intermittent demand well. A custom solution picks the best model per item and connects to your real demand drivers. Your ERP still receives the final numbers.
Each forecast shows the drivers behind it, such as promotions or price changes. Planners can override any number and record why. Forecast value-added reports show whether the model or the override was more accurate. Trust follows the evidence.
The system flags periods when actual demand departs sharply from the forecast. Planners can exclude those periods from training or mark them as one-off events. Demand sensing then weights recent data more heavily until patterns settle.
Yes. Intermittent items get models built for sparse demand, such as Croston-type methods. The goal is the right stock level, not a weekly number that is almost always wrong.
Most clients run a weekly or monthly planning cycle with daily short-term updates. The schedule follows your purchasing and production rhythm. Models retrain on a separate, slower cycle.
Yes. We design the forecast hierarchy for several regions, channels, and business units from the start. New units add data and models without changes to the core.