Order & return quantity forecast for a fashion retailer
The rapidly increasing importance of E-Commerce poses increasing challenges for logistics service providers in terms of warehouse and delivery planning. For Mode Logistik GmbH & Co. KG, thanks to order and return forecasts, better planning of E-Commerce Logistics has now been made possible.
CHALLENGE
Mode Logistik GmbH & Co. KG is the operator of the entire logistics of the fashion retailer Peek & Cloppenburg KG, based in Düsseldorf. In addition to retail logistics, Mode Logistik is also responsible for the online retail warehouse of Fashion ID GmbH & Co. KG.
The online trade of the fashion retailer is very dynamic and presents the logistics service provider with a major challenge in terms of warehouse and delivery planning. In addition, it is becoming more and more important for consumers. For better planning of E-Commerce Logistics, forecasts of orders and returns in online retail were made.
APPROACH
A large number of data sources were examined for the prognosis of future orders and returns. In addition to past order and return quantities and stock levels, known data on marketing campaigns and public holidays are included in the calculation. Various forecasting methods were tested for the modeling and their quality was assessed.
In order to include the employee’s expert knowledge in addition to the data mentioned, employees can create their own attributes via a graphical interface and incorporate them into the analysis.
RESULT
The order and return forecasts make the customer’s capacity planning much easier. With the tool provided, the forecasts can be made at the push of a button and optimally incorporated into everyday work.