Avoid stocking issues during sales peaks with demand-supply planning

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‘We’re sorry – this product is out of stock’. There is no worse phrase in retail. Customers have made it down the sales funnel and we lose the sale due to an empty shelf.

Like every year, Amazon will make a significant effort to avoid that situation this Prime Day. In fact, every retailer should do the same and prepare for the sales peaks. But with heightened seasonal demand, top-class demand and supply planning capabilities are required to avoid over and understocking.

The solution? Leveraging next-gen retail planning technology that uses machine learning algorithms to connect internal data (product attributes, page views, …) and external factors (search trends, weather, social media sentiment, …) for early granular sales forecasting, then prebuilding the right inventory levels ahead of the sales peak and finally adjusting the capacity on the critical nodes of the supply chain to be able to cope with increased volumes.

Whether it’s Prime Day, Christmas, the summer season, or a lipstick from Love Island has gone viral, organisations can ensure perfect supply levels that maximize the benefits from the seasonal sales peaks avoiding both lost sales and excess stock; all while delighting customers when making the purchases they are most excited for.