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Demand forecasting · Replenishment · Working capital

Buy what will sell next month, not what sold last month.

AI demand forecasting at SKU, store and week level, built on your sales, promotions, prices and lead times. Stratgik turns the forecast into purchase orders your buyers approve in NetSuite, Shopify or SAP.

SKU × location forecast every week, with a confidence bandNetSuite Shopify, SAP, Dynamics, Cin7 replenishmentBuyer approves every purchase order

What is AI demand forecasting?

AI demand forecasting is the use of machine learning models to predict future unit sales for each product and location from sales history, promotions, pricing, seasonality, stock availability and external signals such as weather or events. It outputs a weekly forecast with an uncertainty range, and turns that range into recommended order quantities, safety stock levels and reorder dates that planners can approve or adjust.

Retail & supply chainDelivered in the US, UK and UAEUpdated
The cost of forecasting in spreadsheets

The same stock problem shows up twice: empty shelves and full warehouses.

Most mid-market planners still extend last year's sales in a spreadsheet, add a gut-feel uplift and hope the supplier ships on time. The result is cash tied up in the wrong SKUs and lost sales on the right ones.

Inventory distortion costs retailers $1.73 trillion a year. IHL Group puts out-of-stocks plus overstocks at 6.5% of global retail sales in 2025.[1]

North America carries $415 billion of that loss. It is not an Asia-only or big-box-only problem.[1]

Spreadsheet forecasts are refreshed too slowly. A promo, a heatwave or a late container changes demand in days, not at month-end.

Fewer lost sales from product unavailability. McKinsey reports AI-driven supply chain forecasting can cut them by up to 65%.[2]

What we deploy

Three pieces: a forecast you can trust, an order you can approve, and a loop that learns.

Inputs · ERP, POS, ecommerce

Demand signal layer

We pull clean weekly history per SKU and location, and fix the thing most models ignore: sales lost while you were out of stock.

  • Shopify, NetSuite, SAP, Dynamics 365, Lightspeed and EDI feeds
  • Stockout-corrected demand, so empty weeks do not teach the model to order less
  • Promo calendar, price changes, marketplace and wholesale channels kept separate
Model · forecast + uncertainty

Probabilistic forecast engine

Gradient-boosted and hierarchical models forecast every SKU and roll up cleanly to category and region, with a range, not a single number.

  • New-product forecasts from look-alike SKUs
  • Weather, holidays, Ramadan and paydays as features where they matter
  • Accuracy tracked weekly against your current method, SKU by SKU
Output · purchase orders

Replenishment recommendations

The forecast becomes an order: quantity, supplier, order-by date, respecting MOQs, case packs, lead-time variance and your cash budget.

  • Service-level targets set per SKU class, not one rule for all
  • Draft POs pushed to the ERP for buyer approval
  • Overstock alerts with markdown or transfer suggestions
The 21-day production pilot

Three weeks, one category, one number: forecast error against your current plan.

Days 1–4

Connect and clean

Read-only access to two to three years of sales, stock and PO history. We agree the pilot metric, usually weighted MAPE or stockout weeks, and the category.

Days 5–10

Backtest honestly

Models forecast past quarters they never saw. You get SKU-level error versus your existing forecast, including where the model is worse.

Days 11–17

Live orders in shadow

The system drafts real POs next to your buyers' orders. Differences are reviewed together, line by line, with the reason for each.

Days 18–21

Readout and decision

Measured error, projected inventory and service impact, and a costed plan to extend to all categories under the Run fee, or stop.

Options compared

Demand forecasting options compared

CriterionSpreadsheet planningOff-the-shelf planning toolStratgik build + run
Setup timeNone, already in placeA multi-month implementation project21-day pilot on one category
Handles promos and stockoutsManual uplift guessesYes, if data is mapped to its formatModelled from your own promo and stockout history
Fits your ERP and workflowCopy-pasteYou adapt to the toolPOs drafted in your existing ERP
TransparencyFormula visible, logic in someone's headVaries; often a black boxSKU-level drivers and backtests shared
Best fitUnder a few hundred SKUs, stable demandLarge teams wanting a full planning suiteMid-market with messy data and specific constraints
Ongoing costPlanner timeAnnual licence per user or SKUMonthly Run fee, cancel any month
Why it matters now

The gap between good and average forecasting is now measurable in cash.

Rates are higher, so every pound, dirham or dollar sitting in slow stock costs more to finance. Meanwhile customers switch to a competitor the moment an item shows out of stock.

  • Forecast at the level you buy: SKU and location
  • Correct for stockouts before training
  • Show the range, not only the point forecast
  • Keep a buyer in the loop on every order
20–50%reduction in forecast errors from AI-driven forecasting in supply chain management, according to McKinsey.[2]
5–10%lower warehousing costs, alongside 25–40% lower administration costs, in the same McKinsey analysis.[2]
76%of retailers using AI/ML in demand planning and forecasting report positive results (IHL Group, 2025).[1]
$1.77Tin out-of-stocks and overstocks across global retail in IHL Group's 2024 matrix.[3]
Work out the numbers first

What better forecasts are worth to your balance sheet

Two effects: less inventory carried for the same service level, and sales recovered from stockouts. The recovery rates are assumptions we measure in the pilot.

Recoverable per year

Test this in a pilot

Illustrative estimate using your inputs and stated assumptions, not a quote or guarantee. The pilot measures the real figure against your baseline.

Pricing

Priced per program, not per SKU or per seat

Pilot

$15,000 one-time

One category, backtested and run live in shadow for 21 days

  • Data connection to ERP, POS and ecommerce
  • Backtest against your current forecast
  • Shadow purchase orders reviewed with buyers
  • Readout with measured error and cash impact
Scope my pilot
Most teams continue here

Run

$3,500 / month

Weekly forecasts and draft POs for one business unit

  • Weekly retrain and accuracy report
  • Draft POs pushed to your ERP
  • Overstock and stockout alerts
  • Named engineer, business-hours support
Talk to us

Scale

$9,000+ / month

All categories, channels and locations

  • Store and warehouse level forecasts
  • Multi-echelon and inter-site transfers
  • Supplier lead-time risk modelling
  • Quarterly model review with finance
Plan a rollout

Cloud compute and data warehouse usage billed at cost with no markup; typically under $400 a month for mid-market catalogues. Taxes excluded. GBP and AED prices are indicative conversions from USD.

Questions buyers ask

AI demand forecasting: frequently asked questions

How accurate is AI demand forecasting?

AI demand forecasting is typically more accurate than spreadsheet methods, and McKinsey reports AI-driven supply chain forecasting can reduce errors by 20 to 50 percent. Accuracy depends on your data: fast-moving SKUs forecast well, long-tail and brand-new items less so. In the pilot we backtest on quarters the model never saw and report error SKU by SKU against your current forecast, including where it does worse.

How much data do I need for machine learning demand forecasting?

Two years of weekly sales by SKU and location is a good starting point, because it covers at least two seasonal cycles. One year can work with strong look-alike products. We also need stock-on-hand history, a promotions calendar and supplier lead times. Gaps and messy data are normal; cleaning them is part of the first week of the pilot.

How much does AI demand forecasting cost?

A Stratgik AI demand forecasting pilot costs $15,000 for one category over 21 days. Ongoing Run is $3,500 a month for weekly forecasts and draft purchase orders in one business unit, and Scale starts at $9,000 a month across all categories and locations. Cloud usage is billed at cost. There are no per-SKU or per-user licence fees.

Will it work with NetSuite, Shopify or SAP?

Yes. We read sales, inventory and purchase history from NetSuite, Shopify, SAP, Dynamics 365, Cin7 and most POS or WMS systems through their APIs or scheduled exports. Recommended orders are written back as draft purchase orders, so buyers approve them in the ERP they already use. Nothing is placed with a supplier without a human approval.

Is this better than the forecasting module in my ERP?

Often, but not always. Built-in ERP forecasting usually applies moving averages or simple seasonality, which works for stable, high-volume items. It struggles with promotions, stockout-distorted history, new products and multiple channels. The pilot compares both on the same SKUs, so you only switch where the machine learning model is measurably better.

How do you handle stockouts, promotions and new products?

Stockout weeks are corrected so lost demand is estimated rather than recorded as zero. Promotions are modelled by discount depth, channel and placement from your own history. New products borrow patterns from similar SKUs by category, price point and launch season, then shift to their own data after a few weeks of sales.

Next step

Pick one category. We will show you the forecast error in 21 days.

Send us the category that hurts most, whether that is stockouts, dead stock or both. We will scope the pilot, the data we need and the one number we will be judged on.