Retail • Supply Chain
Demand Forecasting for Depot Optimization
Lost sales due to stockouts dropped significantly while inventory levels were optimized to reduce overstocking costs.
Challenge
A company with a 20,000-dealer network and 100+ depots was losing 7% of orders due to insufficient stock. Rule-based methods could not keep pace with demand variability across regions.
Solution
Datoin deployed AI-based demand forecasting to predict product demand per depot using historical data, regional trends, and seasonal patterns. Predictions guided depot managers to stock optimal quantities.
Impact
Lost sales due to stockouts dropped significantly while inventory levels were optimized to reduce overstocking costs.
6%→10% Sales growth improvement
↓ Reduction in lost sales from stockouts
+ Optimized inventory levels
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