An automated forecasting tool that uses artificial intelligence (AI) to help companies bring-to-market new products more successfully, is being launched by supply chain planning software provider FuturMaster.
FuturMaster, whose clients include fashion house LVMH, says a recent trial with a Chinese textile firm found the new AI-powered technology was more accurate in over three-quarters of forecasting scenarios and twice as fast at unravelling data when compared to using teams of trained forecasters and manual methods.
The machine learning software works by using algorithms to group products based on the sales history and behaviour of products with similar characteristics. The autonomous system then applies a set of rules to automatically calculate volume requirements over a variable period, adjusting and constantly adapting over time.
FuturMaster says its tool was developed in response to research from Harvard Business School that shows more than 30,000 new consumer products are launched each year – and 80% fail.
Its automated forecasting solution was found to be better at predicting how sales of new products will typically evolve from the moment they hit the shelves.
Gilles Lefebvre, product manager at FuturMaster, says the software is likely to benefit companies that typically launch many products, such as apparel brands and retailers that introduce several new lines in a season.
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By GlobalData“Launching new products is a complicated process that involves numerous teams collaborating together and requires close monitoring of sales and demand, not to mention harvesting accurate, clean data. Decisions – which can make or break a company – have to be taken early on and it’s an area ripe for the benefits of AI technology.”
