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Retail · Case Study

Demand & Inventory Intelligence

Demand and inventory intelligence that combines forecasting models with merchandising and supply workflows.

  • 35%forecast accuracy improvement
  • 28%stockout reduction
  • 19%markdown reduction in two seasons

Delivered

What we built

Improve forecast accuracy by 35% for a retail & eCommerce leader.

Better forecasts

SKU/location demand models fusing seasonality, promos and external signals.

Inventory health views

Stockout risk and overstock exposure visible before they bite.

Promo signal fusion

Campaign and event effects modeled instead of surprising the plan.

Planner copilots

Plain-language interrogation of any number the system produces.

Inside the build

Forecasts planners stopped overriding

An omnichannel retailer's planners overrode half of all system forecasts — usually making them worse. The fix wasn't a better model alone; it was explainability.

The challenge

A forecasting system nobody believed

The legacy system was a black box with mediocre accuracy. Planners overrode it constantly, adding bias on top of error. Stockouts and markdowns were both rising — the signature of forecasts nobody trusts.

  • ~50% planner override rate, often harmful
  • Promotions routinely surprising the plan
  • Stockouts and markdowns rising together
Before / after
−62%p95 latency
Before
3.4s
After
1.3s
Cost / 1k tasks
$41
Optimized
$14

The solution

Accuracy plus explainability, deliberately paired

New demand models fused promo calendars, weather, trends and pricing — and every forecast exposes its drivers. A planner copilot answers 'why is this number high?' in plain language, with the evidence.

  • Signal fusion lifting accuracy 35%
  • Driver attribution on every forecast
  • Copilot Q&A that made planners partners, not overriders
Production dashboard
99.9%Uptime
1.2sp95 latency
$0.021Cost / task
QualityCostLatencyDrift

The impact

Both failure modes fell together

Stockouts down 28%, markdowns down 19% across two seasons — the pattern only better forecasts produce. Override rates fell to 12%, concentrated where planners genuinely know more.

  • Working capital freed from safety stock
  • Overrides now rare and usually right
  • Planning cycle time cut by a third
Eval suite · 142 cases
Groundedness
96%
Safety
100%
Task success
93%
Tone & format
91%
CI gate passedrelease promoted to production

Outcomes

What changed for the retailer

Availability

28% fewer stockouts on focus categories.

Margin

19% markdown reduction from better buys.

Working capital

Safety stock trimmed with confidence.

Planner productivity

Cycle time down, trust up, overrides rare.

Promo performance

Campaign lift predicted, inventory positioned.

S&OP quality

One explainable number driving the meeting.

Delivery

From challenge to outcome

We publish the architecture decisions, delivery approach and measurable results — so you can see how similar outcomes could apply to your enterprise.

  • Measurable KPIs
  • Architecture transparency
  • Cross-industry patterns
  • Repeatable playbooks
  1. 1
    Challenge

    Business pressure, legacy process and constraints.

  2. 2
    Solution

    Architecture, agents and integration design.

  3. 3
    Delivery

    Build, evaluate, secure and launch.

  4. 4
    Impact

    Efficiency, cost, quality or revenue outcomes.

Stockouts down 28%, markdowns down 19% — but the real win is cultural. Planners interrogate the forecast instead of ignoring it.
Chief Supply Chain OfficerOmnichannel retailer

Under the hood

The stack behind the system

Built on the retailer's existing data platform, integrated with planning tools.

  • Databricks
  • Snowflake
  • Python
  • Anthropic Claude
  • dbt
  • Kafka
  • Power BI
  • AWS
  • Airflow
  • Kubernetes

FAQ

Common questions

Why did explainability matter more than accuracy?

Because unused accuracy is worthless. The 35% accuracy gain only translated into business results when planners stopped overriding — and they stopped when they could interrogate the number.

How do you handle new products with no history?

Attribute-based cold-start models borrow signal from similar products, with wider uncertainty bands shown honestly — planners see the confidence, not just the point estimate.

What data did this require?

Two years of sales history, promo calendars and product attributes — all data the retailer already had. External signals (weather, trends) were layered in during phase two.

Next step

Want forecasts your planners trust?

We'll backtest our approach against your last two seasons and show you the delta.

Book a Strategy Call
ISO 9001:2015 certificate issued to Skugal Technologies Private Limited, certificate number QD-98140/1125

Quality management system

ISO 9001:2015 Certified

Skugal Technologies Private Limited has been independently assessed and found to comply with ISO 9001:2015 for providing quality IT services and software development solutions.

Certificate No.
QD-98140/1125
Standard
ISO 9001:2015
Issued
24 Nov 2025
Valid until
23 Nov 2028
Certification body
Revolutionary Certifications Services (RCS Cert)

Client ID 95268. Validity is subject to annual surveillance audits (next due 23 Nov 2026). Verify at thesasl.co.uk.