Why is it critical to manage product and inventory?
Successfully managing product and inventory is an essential element of financial success. Not only do companies need to forecast demand for hundreds of thousands of SKUs, they also need to account for the product innovation cycle.
According to Nielsen, CPG companies launch an average of 30,000 new products every year, each requiring space on a retailer’s physical and/or virtual shelves.
Although one third of consumers look for new products as they seek to enhance their lifestyle, competition is fierce and the market is selective. Only thirty percent of U.S. launches will grow their sales during the pivotal first two years.
30,000 NPI Annually
Only 33% are Successful
The Challenge we see
Brands with a large SKU count often struggle to accurately forecast and predict demand for new product introductions (NPI), resulting in excess inventory, stockouts, and product obsolescence.
An incomplete understanding of the variables driving demand—and their relationships to one another—can significantly hamper product success and overall inventory performance. This is an area where the predictive powers of artificial intelligence and machine learning are especially effective, allowing businesses to maintain a proper inventory and improve the associated financial results.
The VectorScient Solution
PredictAlly™ for Product and Inventory leverages both demand sensing and demand shaping to address NPI and inventory challenges holistically.
Effective demand planning for
Existing products and New Product Introductions
We begin by understanding and sensing product demand based on sales history and associated macro and micro factors, incorporating the impact of various demand shaping activities and any investments in promotions, advertising, pricing, and discount strategies. We then measure and integrate the impact of New Product Introductions on demand for existing products, quantifying the cannibalization effect and halo effect.
Demand predictions for existing products
Demand predictions for new products
Price elasticity for new products
Product lifecycle predictions
Inventory optimization recommendations
A strategic compass for gauging the holistic
performance of your demand management strategies.
Product and Inventory Dashboard
A visualization of supply chain health, including all relevant KPIs that account for various underlying metrics as building blocks.Get started now
Demand - Supply Equilibrium
Demand-Supply equilibrium shows the alignment between predicted demand and inventory level recommendations, sorted by channel, SKU, SKU category, major B2B customer (Retailer), and warehouse location.Get started now
Lost Sales measures areas where sales opportunities are possibly lost and the associated impact on inventory status.Get started now
Excess Inventory Costs
Excess Inventory Costs shows the split between demand overestimations and inventory management policies to account for long lead times, safety stocks.Get started now
Schedule a demo today.
Explore tools designed specifically for your growing business.