Softobiz
A planner weighing weather, promotions, basket movement and regional demand against one product before setting its replenishment forecast

APPLIED AI SOLUTIONS · DEMAND FORECASTING

Demand forecasting for inventory and planning

We build AI demand forecasting to support replenishment and planning decisions across products, locations and time horizons.

  • The metric agreed before we build, at the level planning decisions are made
  • Hierarchical reconciliation, so SKU, store, and region tell one demand story
  • Automation on the routine forecast, planners on the volatile, high-value items
WHERE FORECASTING ACTUALLY BREAKS

The failure is rarely the top-line number.

A total-company forecast is easy to get roughly right. The pain lives in the details a single average hides, and those details are where markdowns, expedited freight, and lost baskets are born.

Overstocked on the items that will not sell, out of stock on the ones that will. The same plan is wrong in two directions at once, and working capital sits in the wrong warehouse.

FAILURE 01

Cold starts

New products with no history, and seasonal items with too little of it.

FAILURE 02

Promotions and price

Price changes and promotions that break any model trained on normal.

FAILURE 03

Intermittent demand

The slow-moving long tail, where most of your SKUs actually live.

FAILURE 04

Incoherent numbers

Forecasts that look fine at region level but do not add up to what a store can order against.

There is no single best forecasting algorithm. The point is fit, not fashion.

CHOOSING THE RIGHT MODEL, NOT THE TRENDIEST ONE

We match method to the demand pattern, and often ensemble across them.

The right choice depends on data volume, seasonality, and how much explanation the business needs. A well-tuned gradient-boosted model usually beats a deep network starved of data, and we will tell you which one your data actually supports.

Classical: ARIMA, Prophet, exponential smoothingStable series with clear seasonality; sparse history.Fast and interpretable; weak on complex cross-effects
Gradient boosting: XGBoost, LightGBMRich features: price, promo, weather, calendar.Strong accuracy; needs feature engineering and monitoring
Deep learning: Temporal Fusion Transformers, DeepARMany related series, long horizons, cold-start via shared patterns.Highest ceiling; needs data scale and MLOps discipline
THE METRICS THAT DECIDE WHETHER IT IS WORKING

Forecast accuracy is not one number.

A claim of 97% accurate tells you nothing without knowing where it was measured. We agree the metric before we build, at the level where planning decisions are made.

And forecasts must be coherent. A model can be accurate per SKU and still produce numbers that do not sum to the regional plan. We apply hierarchical reconciliation across the SKU, store, and region grid, so the same demand story holds whether finance reads it top-down or a store reads it bottom-up.

MAPEA percentage view where volumes are stable, with the caveat that it distorts on low-volume items.
WAPEThe workhorse. It weights error by volume and survives the intermittent long tail where MAPE breaks.
RMSE and biasSystematic over- or under-forecasting that quietly drives safety stock the wrong way.
THE PATTERN UNDERNEATH

No credible forecast is fully hands-off.

High-confidence, stable items flow straight into the plan. Volatile, high-value, or newly launched items, where the model's own uncertainty is wide, are flagged for a planner.

The planner adjusts with the model's reasoning and confidence interval in front of them. Every override becomes a labelled signal that sharpens the next cycle. Automation carries the routine forecast; people keep control where the stakes and the uncertainty are highest.

WHAT IS INCLUDED

From a provable baseline to a forecast that lives in production.

INCLUDED 01

Baseline diagnostic

Current forecast error measured in MAPE and WAPE against your data, so improvement is provable.

INCLUDED 02

Feature and hierarchy design

Price, promotion, calendar, weather, and lifecycle signals, structured across your planning hierarchy.

INCLUDED 03

Model build and reconciliation

Matched to your demand patterns, reconciled across SKU, store, and region.

INCLUDED 04

Planner workflow

Forecasts, confidence intervals, and override capture landing inside your planning system, not a separate tool.

INCLUDED 05

Monitoring and retraining

Accuracy tracked in production with drift-triggered retraining, run on our MLOps foundation.

TOOLS AND TECHNOLOGIES

Chosen for the demand pattern.

Classical and statisticalARIMA, Prophet, exponential smoothing / ETS, statsmodels
Gradient boostingXGBoost, LightGBM, CatBoost
Deep learningTemporal Fusion Transformer, DeepAR, NeuralForecast, PyTorch Forecasting
Features and reconciliationSpark, dbt, feature stores, hierarchical reconciliation libraries
Serving, monitoring, retrainingMLflow, managed model serving, drift monitoring on our MLOps foundation

Built on the [Scaled GenAI and AI Platforms](/scaled-genai-and-ai-platforms) foundation and kept accurate in production through [MLOps](/mlops).

FREQUENTLY ASKED QUESTIONS

What planners ask us first.

Cold-start items borrow from similar products through shared model structure and attributes, then correct as early sales arrive. Early forecasts carry wider uncertainty, which is exactly why those items route to a planner.

Only if they are ignored. We model promotion and price as explicit features, so the forecast anticipates the lift instead of being surprised by it.

Yes. Output lands in the tool your planners already use, with overrides captured there, so adoption does not depend on anyone learning a new screen.

GIVE YOUR PLANNERS A BASELINE THEY WILL TRUST

Let us measure your current forecast error and show what a fit-for-purpose model would change.

Then a baseline worth adjusting instead of rebuilding, landing where your planners already work.