Fulfilmentcrowd has launched a new forecasting tool called Foresights that is said to enhance inventory management and purchasing decisions. Credit: Quality Stock Arts/Shutterstock.

Fulfilmentcrowd CEO Lee Thompson pointed out fashion retailers are tasked with managing direct-to-consumer (DTC) and retail channels simultaneously, which exacerbates existing issues.  

Thompson referenced a study indicating that nearly half of the inventory purchased by UK retailers ended up being sold at a discount, underscoring how poor purchasing practices can adversely affect profits. 

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He explained: “We see that high-growth brands aren’t investing in data science, preferring a more instinctive approach which tends to result in misaligned buying behaviour that minimises stockouts but ties up huge amounts of capital in goods and storage.

“In our view, forecasting software is a far more effective approach to supply chain management. Accurate prediction of future demand based on seasonal trends and planned promotional activity drives more informed and timely buying decisions. It connects organisational processes, sustainability and ultimately improves the customer experience and nothing frustrates a customer like finding their favourite item out of stock at Christmas.”

To further boost sustainability, fulfilmentcrowd suggests fashion retailers should explore the following approaches: 

  • Nearshoring supply chains to shorten delivery distances and reduce carbon footprints 
  • Streamlining freight routes while collaborating with eco-friendly logistics partners 
  • Creating packaging that enhances both functionality and efficiency, reducing air gaps and cutting greenhouse gas emissions per unit 
  • Integrating circular economy principles into the design and development of products.

Thompson added: “By applying advanced algorithms to stock, supplier and sales data, forecasting can predict future demand more accurately, helping brands maintain optimal stock levels, particularly on the best-sellers. This ensures the right amount of stock is ordered at the right time, reducing risk of stockouts and overstock, which ultimately leads to better cash flow and profitability.” 

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Fulfilmentcrowd has launched a new forecasting tool called Foresights that is said to enhance inventory management and purchasing decisions.  

With the new tool, the platform, known for catering to high-growth brands specifically, hopes to empower businesses with data-driven insights for stock procurement. 

The tool collects data on purchases, orders, and inventory, using time-series behavioural algorithms to identify trends and accurately forecast future demand, fulfilmentcrowd CIO Shaun Cummins said. 

Under typical market conditions, Fulfilmentcrowd’s Foresights demand forecast is said to achieve an accuracy level of +/- 15% regarding product sales and order volume.  

A dashboard provides a view of product statuses highlighting in-demand items as well as those that are non-moving or improperly stocked. 

Thompson pointed out non-moving products currently represent 32% of the inventory managed by Fulfilmentcrowd, and stated:

“We’re always looking at ways to develop methods to keep product away from landfill or incineration – examples include selling through on promotion, donating to charity or social enterprises, recycling, upcycling, and reprocessing where possible.” 

Fulfilmentcrowd noted the benefits of advanced forecasting tools includes:

1. Enabling users to match supply with demand more effectively, mitigating risks associated with overproduction and excess inventory

2. Providing actionable insights into trends that inform better buying decisions, optimising resource allocation and minimizing waste.

3. Improving stock turnover rates, cash flow, and operating margins

4. Facilitating long-term inventory planning that can reduce reliance on high greenhouse gas (GHG) impact expedited shipping methods like air freight. 

A study by Fulfilmentcrowd released recently suggested 30% of fashion items purchased online in the UK are returned each year with ‘poor fit’ being the main reason cited by consumers.