Inventory and stock management

Artificial intelligence

In food industry inventory forecasting and optimization

The food industry is one of the largest as well as most complex industries in the world, with the end product running the gamut from raw materials to processed foods. This breadth encompasses a diversity of participants, including farmers, manufacturers, distributors, retailers and consumers. The complicated structure of the food sector creates significant challenges for supply chain management, including demand forecasting and inventory optimization. Machine learning has become a powerful tool to help food companies optimize their inventory management and forecasting processes, resulting in increased productivity and profitability.

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Demand forecasting process

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A key component of supply chain management is demand forecasting. Accurate forecasts enable food companies to maintain adequate inventories, meeting consumer demand while avoiding overproduction, waste and product spoilage. Traditional forecasting methods rely on historical data, which may not reflect current market conditions, consumer preferences or other factors affecting demand. Effective inventory management for food companies requires access to data from a variety of sources, such as sales data or information about their customers' promotional plans. An important challenge here is the possibility of integrated forecasting and replenishment planning, known as CPFR (Collaborative Planning, Forecasting and Replenishment).


Integrated forecasting and inventory management rely on the exchange of information and insights between business partners such as manufacturers, distributors and retailers. This collaboration allows partners to better understand each other's operations, demand patterns and inventory levels, and work together to create more accurate demand forecasts.

One of CPFR's key strengths is its ability to reduce waste and improve sustainability. In the food industry, waste is a major problem, especially in the context of perishable products such as fresh produce, meat and dairy, which have a limited shelf life. By optimizing inventory levels and reducing excess, business partners can reduce waste and improve their sustainability position.

CPFR also allows companies to improve customer service levels. By collaborating on forecasting and replenishment planning, business partners can ensure that they have the right products in the right quantities and at the right time. This can help increase customer satisfaction and loyalty, which in turn leads to increased sales and profitability.


The Dature system uses artificial intelligence (AI) and machine learning (ML) to generate accurate demand forecasts. In addition, it has functions for integrated demand planning (CPFR) and inventory management (e.g. VMR). The algorithms used in the system allow a customized approach to forecasting for individual SKUs, taking into account both internal organization data (such as sales, promotions) and external data (such as customer and supplier promotions, weather conditions, etc.). This significantly improves the quality of forecasts and reduces the risk of out-of-stock or overstock situations. Thanks to the mechanisms available in the system for analyzing the quality of statistical and expert forecasting, it is possible to systematically improve the quality of the entire process. As a result, this translates into financial benefits: increased sales, margins, reduced costs and improved liquidity, as well as image benefits. In other words, you get higher competitiveness in the market.

Potential business benefits

Reduce forecasting errors by 30% to 50%.

Reduce lost sales by up to 65%,

Reduction in transportation and administration costs by 5-10% and 25-40%, respectively.

Reduction of excess inventory from 20% to 50%.

Customer reviews

"The Dature Premium application is an important part of our planning process to ensure the availability of our products to our customers. On the other hand, sustainability and care for the environment require us to eliminate overstock situations. By using the artificial intelligence (AI) available at Dature Premium, we are able to meet both of these business objectives and continuously improve the efficiency of our processes."

Agnieszka Zontek, Director of Logistics and Customer Service, Zakłady Mięsne Silesia S.A.

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