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.