Demand Management Solutions for Ecommerce

Ever wonder why some e-commerce brands always seem to have the right products in stock, while others struggle with overstock or empty shelves? It all comes down to demand forecasting—and in 2025, it’s getting an AI-powered upgrade. ● From guesswork to precision Traditional forecasting relies on historical sales data. AI-driven tools now go beyond that, integrating real-time factors like weather, local events, and even social media trends. The result? Forecasts with 90%+ accuracy instead of the usual 50%. ● GenAI: the next step Generative AI takes it further by analyzing unstructured data (customer reviews, trends, emerging demand signals) and answering questions in plain language. No more complex spreadsheets—just instant insights for better inventory planning. ● AI tools leading the way: ✔ Simporter – AI-powered forecasting that integrates multiple data sources to predict sales trends. ✔ Forts – uses AI for demand and supply planning, ensuring optimized inventory. ✔ ThirdEye Data – AI-driven forecasting that factors in seasonality and customer behavior. ✔ Swap – AI-based logistics platform that enhances inventory management. ✔ Nosto – AI-driven personalization that recommends the right products at the right time. ● Why this matters for #ecommerce? ✔️ Avoid stockouts that frustrate customers ✔️ Reduce excess inventory and free up cash ✔️ Adapt quickly to market shifts How are you managing demand forecasting in your store? #shopify

A single Tik Tok video goes viral overnight. Millions want your product. Your supply chain collapses. Welcome to the new reality where social media campaigns can completely unravel a supply chain in 72 hours. This is exactly what happens to beauty brands time and time again. The problem isn't just demand spikes - it's the unpredictability. Traditional forecasting can't predict when an influencer features your product to 50 million followers. When Prada's Astral Pink Lip Balm appeared in Sabrina Carpenter's viral music video, it sold out from every retailer within 72 hours. This is where DDMRP buffers become your supply chain firewall. At SAPICS 2025, Emmanuelle COHEN from #HUDABeauty shared results that left the entire audience speechless. → 400% business growth in 4 years → Service levels jumped from 68-81% to 95% consistently → Stock rebalancing costs slashed by 75% (from $720K to $180K) → Units requiring emergency rebalancing dropped from 4% to 0.6% They achieved this while their "Easy Bake" product experienced 20X growth with massive viral spikes from TikTok, Instagram campaigns, and Cyber Week frenzies. Most supply chains would have collapsed under this volatility. HUDA Beauty's didn't. How DDMRP buffers actually work: ↳ Strategic Positioning - Buffers at critical decoupling points, not everywhere ↳ Spike Detection - System identifies demand exceeding normal expectations ↳ Dynamic Response - Buffers protect your entire supply chain while emergency replenishment kicks in ↳ Flow Protection - Viral spikes don't consume safety stock for other products Think of DDMRP buffers like circuit breakers - they absorb demand surges while protecting your ability to serve all customers.

5 Key Strategies to Avoid Stockouts and Overstocking in E-commerce  Managing inventory effectively is crucial for the success of any e-commerce business.  Stockouts and overstocking can both hurt your bottom line and damage customer trust.  Here are five key strategies to help you strike the perfect balance: 1. Manage Stock Effectively: Stockouts and overstocking are major issues that can derail your business. Effective stock management is the foundation for avoiding these pitfalls. Regularly review your inventory levels and adjust your stock orders accordingly. 2. Master Operational Basics: Understanding key operational factors like realistic lead times and sales velocity is crucial. Use recent data to forecast sales accurately, especially during aggressive marketing or promotional campaigns. Knowing how fast your products sell and how long it takes to restock them can help you maintain optimal inventory levels. 3. Optimize Supplier Communication: Maintaining clear and proactive communication with your suppliers is essential for quickly resolving any supply chain issues. Regular updates and real-time feedback from suppliers allow you to adjust your inventory planning dynamically. This proactive approach helps mitigate delays and ensures a smooth supply chain. 4. Use Current Data for Forecasting: Rely on the latest data for inventory planning, particularly during high-demand periods. Using outdated six-month or one-year-old data can lead to inaccurate forecasts. Instead, I recommend using monthly data to reflect the current market trends and customer behavior, providing a more accurate basis for your inventory decisions. 5. Deploy Advanced Forecasting Tools: Leverage advanced technology and tools for accurate sales data analysis and forecasting. A good forecasting tool can simplify the process of comparing current trends with past data, helping you make informed decisions. These tools can analyze patterns and predict future demand with higher accuracy, reducing the risk of stockouts and overstocking. 6. Manage Inventory with Strategic Pricing: To handle overstock situations, consider implementing price reductions or promotions. Use overstock item promotions strategically to boost sales of other items through bundling or discounts. This not only helps clear excess inventory but also drives additional sales and improves customer satisfaction. By implementing these strategies, you can effectively manage your inventory, avoid costly stockouts and overstocking, and keep your e-commerce business running smoothly. How do you avoid stockouts and overstocking?

𝗦𝗲𝗹𝗹𝗶𝗻𝗴 𝗮𝗰𝗿𝗼𝘀𝘀 𝗺𝘂𝗹𝘁𝗶𝗽𝗹𝗲 𝗰𝗵𝗮𝗻𝗻𝗲𝗹𝘀 𝗯𝘂𝘁 𝘁𝗿𝗲𝗮𝘁𝗶𝗻𝗴 𝗶𝗻𝘃𝗲𝗻𝘁𝗼𝗿𝘆 𝗮𝘀 𝗮 𝘀𝗶𝗻𝗴𝗹𝗲 𝗽𝗼𝗼𝗹… 𝘆𝗼𝘂’𝗿𝗲 𝗹𝗲𝗮𝘃𝗶𝗻𝗴 $$$ 𝗼𝗻 𝘁𝗵𝗲 𝘁𝗮𝗯𝗹𝗲. The “first-come, first-served” inventory approach works well for most pure-play Shopify brands. Things get complicated once you expand into B2B, marketplaces, or retail. Let’s say your brand just launched B2B. You’ve got 3 reps on the road, pitching your assortment to boutiques and working to get your apparel into stores. But every time they close a deal, they encounter the same problem: “There is no inventory left to fulfill orders—it has already been consumed by online.” At GoodDay Software, we’ve created a retail operating system that enables virtual inventory management. This system allows your operations to adequately serve every demand channel. Here’s what’s working for these brands: 𝟭. 𝗦𝗲𝗴𝗺𝗲𝗻𝘁 𝗶𝗻𝘃𝗲𝗻𝘁𝗼𝗿𝘆 𝗮𝗰𝗿𝗼𝘀𝘀 𝘃𝗶𝗿𝘁𝘂𝗮𝗹 𝗽𝗼𝗼𝗹𝘀 To scale across ecommerce, marketplaces, retail, and wholesale, you need virtual inventory pools, which pre—allocate stock so that one channel doesn’t drain the others. 𝟮. 𝗧𝗿𝗮𝗰𝗸 𝗶𝗻𝘃𝗲𝗻𝘁𝗼𝗿𝘆 𝘀𝗵𝗶𝗳𝘁𝘀 𝗮𝘁 𝗹𝗲𝗮𝘀𝘁 𝘄𝗲𝗲𝗸𝗹𝘆, 𝗻𝗼𝘁 𝗺𝗼𝗻𝘁𝗵𝗹𝘆 Most brands plan demand monthly, but proper inventory management requires more frequent check-ins. You should study sell-through rates, incoming POs, and available stock across channels at least once a week. And, make operational optimizations to improve your inventory positions. 𝟯. 𝗔𝘂𝘁𝗼𝗺𝗮𝘁𝗲 𝗿𝗲𝗯𝗮𝗹𝗮𝗻𝗰𝗶𝗻𝗴 𝗳𝗼𝗿 𝘀𝗺𝗮𝗿𝘁 𝗮𝗹𝗹𝗼𝗰𝗮𝘁𝗶𝗼𝗻 As the number of demand channels continues to grow, the workload related to managing an omnichannel business expands as well. Or, does it? Future-ready brands will use AI-native inventory systems to continuously monitor stock across physical and virtual pools and dynamically help move inventory just-in-time to where demand is strongest. Omnichannel success starts with better inventory discipline. What’s your biggest challenge in managing stock across multiple channels? #inventory #DTC #retail