It has been shown that if your current forecast accuracy is 60%, then every increment of just 1% can lead to a 2.5% improvement in safety stock. Imagine if you could improve forecast accuracy by 10%, or even 20%.
It’s possible, but requires a more sophisticated demand forecasting engine that can combine sales history with those factors that influence demand. In the course of everyday use, RE2.0 records all the historic information that can then be used to enrich the sales history with causal information. This data is modelled and can be used by the demand forecasting engine to produce the most accurate forecast possible. Our forecast engine takes into account price changes, promotions, advertising, display, seasons, trend, events and more to produce an integrated demand forecast containing base and promotional lift as well as reporting on the effects of advertising and display.
Our aim was to develop a system that’s easy to use and doesn’t require a team of dedicated forecasting experts to operate; What we ended up with is something unique and inherently useful for managing your day-to-day merchandising and planning tasks.
Accurate – Take account of all demand drivers to ensure you get the best forecast accuracy possible. Improvements of at least 10% are possible – and more for promotional forecasts.
Fast – Forecasts can be requested in real-time at any time and will take into account the current state of play with your pricing, promotions, advertising and display.
Integrated – Change a price or add a promotion, see the effect on sales, profits and margin immediately on the desktop.
Available – Forecasts are available at all key decision points to ensure the right decision is made every time.
Collaborative – All collaborators, whether they are pricing analysts, category managers or marketers, see the same forecast. Decisions are therefore consistent across departments.