Demand Forecasting That Works: 88% Accuracy, $142M Saved, Stockouts Cut

AI Forecasting That Saved $142M for Global Retailer

Considering each outlet's specifics, we built the AI demand forecasting solution and optimized the volume of goods in the warehouse and the range of goods in different locations. We set up a system that has processed over 8 TB of sales data. These have helped the retail business increase revenue, improve logistics planning, and achieve other business goals.

Data Insights & Forecasting

Data Science

Retail

Data Insights & Forecasting

Data Science

Retail

88%

forecasting accuracy

0.9%

out-of-stock reduced

About the client

The retail trading company focused on producing luxury goods, available in more than 3,000 stores worldwide.

Tech stack

ReactJS

Django

Pandas

Pyspark

Redis

The client's needs

The global luxury retailer needed to cut inventory costs across their 3,000+ locations without creating stockout situations that would damage their premium brand image. They needed a demand solution forecasting management system that could process their massive sales history (8TB) to predict future demand with enough accuracy to make actionable stocking decisions. Most critically, they needed store-specific assortment planning that respected the unique buying patterns of customers in different geographic markets, rather than a one-size-fits-all forecasting approach.

Challenges & solutions

Challenge

Optimize the volume of goods in the warehouse by location.

Solution

Clustered stores by customer behavior and applied time series models. Upgraded to a neural network with holiday, weather, and economic inputs for dynamic regional forecasts.

Challenge

Optimize the assortment of goods in various locations.

Solution

Processed 8TB of sales data to build a model recommending SKU-level assortments per store, based on demand patterns and inventory turnover.

Challenge

Build a demand forecasting solution.

Solution

Created a hybrid LSTM + regression model with 88% accuracy. System re-trains on new data, adjusts forecasts, and updates safety stock levels automatically.

Challenge

Solution

Challenge

Solution

Challenge

Solution

Challenge

Solution

Challenge

Solution

Luxury Retailer AI Demand Forecasting Implementation

Results

Business Impact

$142 million saved by reducing excess inventory across the global supply chain.
Stockouts decreased from 4% to 0.9%, improving product availability and customer satisfaction.
Inventory residues reduced by 19%, freeing up warehouse space and reducing waste.

Forecasting Accuracy & System Performance

Achieved 88% forecasting accuracy, significantly improving planning reliability.
The system processed eight terabytes of sales data across 3,000+ stores.
Adjusted forecasts dynamically by factoring in each country's holidays, weather, and economic indicators.

Operational Improvements

Optimized warehouse stock levels per location using store clustering based on customer behavior.
Customized product assortment for each outlet, increasing alignment with local demand.
Enhanced logistics planning and distribution efficiency.

Client Outcomes

Improved revenue and customer experience through better stock availability.
Increased supply chain agility through dynamic, data-informed decisions.
Strengthened long-term decision-making capabilities via a flexible, interpretable AI demand forecasting solution.

I think what is really special about the DATAFOREST service is its flexibility, openness, and level of quality and expertise.

Andrew M.

CEO Luxury Goods Retail

Steps of providing
data scraping services

Step 1 of 5

Free consultation

It's a good time to get info about each other, share values and discuss your project in detail. We will advise you on a solution and try to help to understand if we are a perfect match for you.

Step 2 of 5

Discovering and feasibility analysis

One of our core values is flexibility, hence we work with either one page high level requirements or with a full pack of tech docs. At this stage, we need to ensure that we understand the full scope of the project. Receive from you or perform a set of interviews and prepare the following documents: list of features with detailed description and acceptance criteria; list of fields that need to be scraped, solution architecture. Ultimately we make a project plan which we strictly follow. We are a result-oriented company, and that is one of our core values as well.

Step 3 of 5

Solution development

At this stage, we develop the scraping engine core logic. We run multiple tests to ensure that the solution is working properly. We map the fields and run the scraping. While scraping, we keep the full raw data so the final model can be enlarged easily. Ultimately we store data in any database and run quality assurance tests.

Step 4 of 5

Data delivery

After quality assurance tests are completed, we deliver data and solutions to the client. Though we have over 15 years of expertise in data engineering, we expect client’s participation in the project. While developing and crawling data, we provide midterm results so you can always see where we are and provide us with feedback. By the way, a high-level of communication is also our core value.

Step 5 of 5

Support and continuous improvement

We understand how crucial the solutions that we code for our clients are! Our goal is to build long-term relations, so we provide guarantees and support agreements. What is more, we are always happy to assist with further developments and statistics show that for us, 97% of our clients return to us with new projects.

How we provide data integration solutions

Step 1 of 5

Free consultation

It's a good time to get info about each other, share values and discuss your project in detail. We will advise you on a solution and try to help to understand if we are a perfect match for you.

Step 2 of 5

Discovering and feasibility analysis

One of our core values is flexibility, hence we work with either one page high level requirements or with a full pack of tech docs.

At this stage, we need to ensure that we understand the full scope of the project. We receive from you or perform a set of interviews and prepare the following documents: integration pipeline (which data we should get and where to upload), process logic (how system should work); use cases and acceptance criteria; solution architecture. Ultimately we make a project plan which we strictly follow.

Step 3 of 5

Solution development

At this stage, we build ETL pipelines and necessary APIs to automate the process. We attract our DevOps team to build the most efficient and scalable solution. Ending up with unit tests and quality assurance tests to ensure that the solution is working properly. Focus on Results is one of our core values as well.

Step 4 of 5

Solution delivery

After quality assurance tests are completed, we deliver solutions to the client. Though we have over 15 years of expertise in data engineering, we are expecting client’s participation in the project. While developing the integration system, we provide midterm results so you can always see where we are and provide us with feedback. By the way, a high-level of communication is also our core value.

Step 5 of 5

Support and continuous improvement

Steps of providing web applications services

Step 1 of 7

Web development discovery

In the initial stage of the web-based development project, professional business analysts make detailed documentation of the project requirements and the approximate structure of the future web application. DATAFOREST is a custom web application development agency, guided by extensive experience in multiple industries. We give you detailed project documentation and then assemble the team according to your time and budget.

Step 2 of 7

UX and UI design

Based on your wishes, the needs of your target audience, and the best web application design and development practices, our UX and UI experts create an aesthetically pleasing and user-friendly interface for your app to satisfy even the most demanding users.

Step 3 of 7

Web-based application development

At DATAFOREST we are following the best programming design principles and approaches. Being a data engineering company, we build high load platforms, with a significant level of flexibility and result orientation. We keep our deadlines and follow SOC 2 compliance requirements.

Step 4 of 7

Integration

With DATAFOREST, integrating the application into your business won’t stop your processes for a minute. We provide seamless integration with your software infrastructure and ensure smooth operation in no time.

Step 5 of 7

Quality assurance

We use a multi-level quality assurance system to avoid any unforeseen issues. Working with DATAFOREST, you can be confident that your web app development service solutions arrive to the market polished and in full compliance with all certification requirements.

Step 6 of 7

24/7 support

Once a product is released to the market, it’s crucial to keep it running smoothly. That’s why our experts provide several models of post-release support to ensure application uptime and stable workflows, increasing user satisfaction.

Step 7 of 7

Web app continuous improvement

Every truly high-quality software product has to constantly evolve to keep up with the times. We understand this, and therefore we provide services for updating and refining our software, as well as introducing new features to meet the growing needs of your business and target audience.

The Way We Deal with Your Task and Help Achieve Results

Step 1 of 5

Free consultation

It's a good time to get info about each other, share values, and discuss your project in detail. We will advise you on a solution and help you understand if we are a perfect match for you.

Step 2 of 5

Discovering And Feasibility Analysis

One of our core values is flexibility. Hence, we work with either one-page high-level requirements or a whole pack of tech docs. In AI demand forecasting case studies, there are numerous models and approaches, so at this stage, we perform a set of interviews to define project objectives. We elaborate and discuss a set of hypotheses and assumptions. We create a solution architecture, a project plan, and a list of insights or features to achieve.

Step 3 of 5

Solution Development

The work starts with data gathering, data cleaning, and analysis. Feature engineering helps to determine your target variable and build several models for the initial review. Further modeling requires validating results and selecting models for further development. Ultimately, we interpret the results. Nevertheless, demand forecasting solution modeling is a process requiring many back-and-forth iterations. We are result-focused, as it's also one of our core values.

Step 4 of 5

Solution Delivery

AI demand forecasting solutions can be a list of insights or models that consume data and return results. Though we have over 15 years of expertise in data engineering, we expect the client's participation in the project. While modeling, we provide midterm results so you can always see where we are and provide us with feedback. By the way, a high level of communication is also our core value.

Step 5 of 5

Support And Continuous Improvement

We understand how crucial the solutions that we code for our clients are! We aim to build long-term relations, providing guarantees and supporting agreements. Moreover, we are always happy to assist with further developments, and statistics show that 97% of our clients return to us with new projects.

The way we deal with your issue and achieve result

Free consultation

Step 1 of 5

It's a good time to get info about each other, share values and discuss your project in detail. We will advise you on a solution and try to help to understand if we are a perfect match for you.

Step 2 of 5

Discovering and feasibility analysis

One of our core values is flexibility, hence we work with either one page high level requirements or with a full pack of tech docs.

Depending on project objectives, DevOps activity requires auditing the current approach, running metrics measurement, performing monitoring and checking logs. By having a set of interviews, we ensure that we understand the full scope of the project. Ultimately we make a project plan which we strictly follow. We are a result-oriented DevOps service provider company, and that is one of our core values as well.

Step 3 of 5

Solution development

At this stage, our certified DevOps engineers refine the product backlog. We deliver great results within digital transformation, cost optimization, CI/CD setup, containerization, and, last but not least, monitoring and logging. We are a result focused company – it’s one of our core values.

Step 4 of 5

Solution delivery

After quality assurance tests are completed, we deliver solutions to the client. Though we have over 15 years of expertise in data engineering, we expect client’s participation in the project. By the way, a high-level of communication is also our core value.

Step 5 of 5

Support and continuous improvement

Success stories

Check out a few case studies that show why DATAFOREST will meet your business needs.

All Success Stories

Supply chain dashboard

The client needed to optimize the work of employees by building a data source integration and reporting system to use at different management levels. Ultimately, we developed a system that unifies relevant data from all sources and stores them in a structured form, which saves more than 900 hours of manual work monthly.

900h+

manual work reduced

100+

system integrations

Michelle Nguyen

Senior Supply Chain Transformation Manager Unilever, World’s Largest Consumer Goods Company

View case study

Their technical knowledge and skills offer great advantages. The entire team has been extremely professional.

Performance Measurement

The Retail company struggled with controlling sales and monitoring employees' performance. We implemented a software solution that tracks sales, customer service, and employee performance in real-time. The system also provides recommendations for improvements, helping the company increase profits and improve customer service.

17%

increase in sales

15%

revenue boost

Amir R.

CEO Fashion Retailer

View case study

They easily understand industry-specific data and KPIs, and their efficiency as a team allows them to deliver results quickly.

Client Identification

The client wanted to provide the highest quality service to its customers. To achieve this, they needed to find the best way to collect information about customer preferences and build an optimal tracking system for customer behavior. To solve this challenge, we built a recommendation and customer behavior tracking system using advanced analytics, Face Recognition, Computer Vision, and AI technologies. This system helped the club staff to build customer loyalty and create a top-notch experience for their customers.

customer retention boost

25%

profit growth

Christopher Loss

CEO Dayrize Co, Restaurant chain

View case study

The team has met all requirements. DATAFOREST produces high-quality deliverables on time and at excellent value.

Stock relocation solution

The client was faced with the challenge of creating an optimal assortment list for more than 2,000 drugstores located in 30 different regions. They turned to us for a solution. We used a mathematical model and AI algorithms that considered location, housing density and proximity to key locations to determine an optimal assortment list for each store. By integrating with POS terminals, we were able to improve sales and help the client to streamline its product offerings.

10%

productivity boost

increase in sales

Mark S.

Partner Pharmacy network

View case study

The team reliably achieves what they promise and does so at a competitive price. Another impressive trait is their ability to prioritize features more critical to the core solution.