Ikigai Revolutionizes Demand Forecasting and Planning with Cutting-Edge AI Solution
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Case Study

~$1B retailer uses Ikigai to revolutionize demand forecasting

Consumer goods retailer improves forecast accuracy and granularity with Ikigai's Core Demand Forecasting solution, New Product Introduction (NPI) module, and What-If Analysis module

Customer overview

$1B+
annual revenue
150+
retail locations
$1B+
annual revenue
150+
retail locations
$1B+
annual revenue
150+
retail locations

Business challenge

Retailer wanted better demand forecasts across both their retail and wholesale business at a highly granular level (e.g., by SKU)

Their existing forecasts were manual, relied primarily on human intuition, and were not at the SKU level

Retailer was looking to launch a new product, but had no historical data to use in forecasts

They weren’t sure how to forecast demand for this new product and whether the introduction of this new product would cannibalize sales of existing, similar SKUs

Retailer wanted to understand how discounts they were considering for their products would affect demand

While they assumed that discounts would drive greater demand, discounts also ate into their margins; they needed to find theright discount rate to optimally balance margins and unit sales

Ikigai’s solution

Core Demand Forecasting solution:

  • Highly accurate demand forecasts 12 weeks out, filterable by granular attributes including State, Store, Category and SKU
  • Revenue forecasts using forecasted demand and unit prices

New Product Introduction module:

  • Demand forecast for brand new SKU using internal & market data combined with proprietary AI
  • Forecast includes anticipated impact of introduction of new SKU on existing product demand

What-If Analysis module:

  • Interactive tool allows retailer to model projected demand impacts of potential discount programs in real-time

Key outcomes

90%+
accurate forecasts
4
additional levels of granularity enabled in demand forecasts

Benefits of Ikigai

  • aiCast product enables accurate forecasting, even with limited data
  • Harmonized platform ensures auditable, explainable forecasts
  • What-if analysis enables business to anticipate total margin impact of discount programs

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