JapanRetail and e-commerce2021 – ongoingFast Retailing
AI demand forecasting linked to sales and production planning
Fast Retailing used AI demand forecasts in daily sales and production planning
Problem
Global expansion made it harder to supply each store with the right products at the right time.
Approach
Fast Retailing developed an AI demand-forecasting model with Google. It fed forecasts into sales plans and used algorithms to connect those plans with production and inventory planning. The company described this as daily operating practice in October 2021.
Results
No published figures
Takeaway
Forecasts fed operational planning, although Fast Retailing did not quantify their accuracy improvement.
Categories
- Size
- Large enterprise
- Industry
- Retail and e-commerce
- Business function
- Logistics and supply chain
- Innovation type
- Process innovation
- AI technology
- Predictive analytics and MLOptimization
- Adoption
- Partner co-development
- Evidence
- Company's own claim
Sources
Source summaries
Fast Retailing described its Google-developed demand model and daily use of forecasts in connected planning. It said sales-plan accuracy improved without disclosing a numerical gain.
Full details are in the original sources.
