Correct Product, Correct Time, Correct Place
Demand Forecasting & Prodea Solution

Correct Product, Correct Time, Correct Place Demand Forecasting & Prodea Solution

Nowadays, the minimization of inventory costs and the prevention of selling out are among the most important issues for companies' inventory planning teams. The diversity of products and sales channels makes control and decision-making steps difficult in planning processes. It is the most basic rule of successful sales management to deliver the desired product to the customer as soon as possible through different channels.

Within the framework of all these needs, the ability to make an effective demand forecasting, to ensure that in-system inventories are in the correct quantities in the correct channels and to plan new purchases within the buffer stocks creates the need for an application that will bring the data from demand forecasting and these systems into the replenishment and allocation processes. Respectively, the process is managed as sales forecast data generation, inter-store transfers, warehouse and inter-store transfers and procurement.

Prodea special solution is aimed at managing replenishment and allocation processes with the data from sales forecasting engines, based on the experience we have gained in projects for many years.

Components of Demand Forecasting Solution

  • Program sets using the HANA embedded analytics structure that will quickly serve data for sales forecasting,
  • Constraint management cockpit to manage channel and store constraints for replenishment and allocation,
  • Supply programs that supply goods to stores and channels from suppliers and distribution centers within the framework of constraints determined according to incoming forecast data
  • Inter-store transfer management (cross-transfer) with specialized algorithms to manage stock balance between stores

Sales Forecasting

Putting the correct product in the correct place at the correct time is one of the most important problems of retail. Forecasting engines that use advanced statistical methods come to the fore. These products take into account factors such as seasonality and campaign effects while forecasting and allow you to manage them. UDF (Unified Demand Forecasting), the demand forecasting engine that comes with SAP's CAR (Customer Activity Repository), calculates the demands of stores and channels with advanced algorithms in a fully integrated manner with SAP Fashion and Retail systems.

Prodea Replenishment and Forecasting solution can use the forecasting data generated with CAR-UDF, as well as integrate with any non-SAP forecasting program.

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Transfer between Warehouse and Store

Transfer orders are created from the central warehouse to the store within the framework of the constraints set to meet the store sales data.


By calculating warehouse transfers, open purchase orders, buffer stock data, and optionally return order data, the purchase requirement for the central warehouse is calculated and purchase orders are created automatically.

Supply Cockpit

  • The following data can be managed in the cockpit used for transfer orders and purchase orders:
  • Selection screen: Material, purchasing group, goods group, vendor, store
  • Basic parameters used for program operation control:
    1. Review time: (Optional) Review time information is used in order calculations as long as it is defined in the system.
    2. Supply source control: Separate purchase orders are opened according to whether the product is supplied from the Central Warehouse or the store from the Supplier.
    3. Buffer stock: Determine whether buffer stock should be taken into account to reduce the stock in the central warehouse periodically.

Inter-Store Transfer (Cross Transfer)

With the Prodea solution, the cross-transfer algorithm, it makes the decision to transfer the generated sales data from the store with excess stock, taking into account various criteria. Optionally, the transfer documents to be opened are reduced to the approval of the relevant department or automatically run for a certain day - time. The cross transfer solution works according to many parameters such as broken index, number of store stock days. The cross transfer program can be used to manage the deteriorating stock balance independent of the replenishment and allocation process, or it can be positioned as part of the replenishment and allocation process according to the strategy to be determined.

Constraint Management Cockpit

Constraint Management screen is designed for periodic restriction operations that are desired to be used for stock movements. With this structure, constraint groups are created by the user with the following criteria:

  • Goods group
  • Store no.
  • Date of first entry
  • Last date of entry
  • Brand
  • Price
  • Supplier

For these constraint groups created, the transfer and order documents to be opened in the system are blocked. Which document type will be blocked can be changed parametrically. In addition, the user can choose which direction to block within the constraint group:

  • Block Transfer
  • Block Order
  • Block Return to Warehouse
  • Block Replenishment
  • Block Supplier Returns

Program working days

A separate interface is designed for the user to manage the program parameters. In this way, it is possible to run the program only in the date range and with the filter - parameter data desired by the user without any revision by the technical team.
In case the user wants to exclude forecast data and orders to be opened for certain product groups, the constraint management structure is used.

Managing end-to-end demand forecasting, cross-transfer and ordering processes with Prodea solutions through the SAP system is a big plus for faster decision making, controlling processes and accelerating the procurement process.

“Inspired by the Power of Change”

As Prodea, we know that the needs of the business world are constantly changing and we serve companies that believe that change is an opportunity. We develop solutions suitable for the needs of our customers and calibrate them to accepted standards. We offer end-to-end SAP solutions with our expert consultants in all SAP modules for the needs of our customers.