To address the challenge of anticipating demand for particular products based on seasonal and intermittent market trends, Manhattan Associates has created the Unified Forecasting Method. It is an algorithm leveraged within Manhattan's Demand Forecasting solution to automatically sense shifts in market demand and slash wasted inventory based on seasonal and intermittently demanded products.
The Unified Forecasting Method (UFM) was developed by blending four different forecasting methods, with the goal of solving the challenge of planning inventory levels for products with unpredictable buying patterns. After analyzing the algorithm with a Manhattan customer in the auto parts industry, the results showed that UFM also addressed the issue of seasonal demand, enabling the Demand Forecasting solution to provide the best trended, seasonally adjusted forecast possible and maintain appropriate inventory levels of different products in different locations, creating shelf space for products in demand.
"We put the Unified Forecasting Method through a proof-of-concept with one of our customers last year and projected an inventory savings of almost $150 million, along with significant service level increases," said Eddie Capel, executive vice president, Global Operations, Manhattan Associates.
