Predict Stockout for Inventory Items

Predicts whether an item will go out of stock for a particular location in a chosen number of weeks.

Predicts if an item at a particular inventory location is expected to go out of stock within a user-defined period, for example, 3 weeks. It uses sales and inventory snapshot data such as item, item related sales orders, inventory data, and location to predict stockout.

This prediction application provides:

• Automated insight and analytics of inventory at risk of stockout.
• Ability to generate increased revenue and improved customer satisfaction by avoiding stockouts, reducing lost sales, and increasing revenue.
• Opportunities to ensure customer satisfaction remains high and potential to build brand ambassadors.
• Competitive advantage (if competitors face frequent stockouts) by providing potential to gain competitor’s market share and potential to build stronger relationships with suppliers to limit disruption.
• Data-driven insights to the stakeholders to make informed decisions about inventory management that they can use to improve demand forecasting.
• Supply chain optimization by ordering goods from suppliers earlier.

Ensure to activate the Sales and Inventory functional areas prior to activating this application.

1. Select the toggle for Enable NetSuite Predictive Applications in Pipeline Features under the Preview Features tab on the Enable Features page. See Make Preview Features Available.
2. On the Generally Available Features tab, select the toggle for NetSuite Stockout Prediction under Functional Areas.
   
   

   

   
   
3. Navigate to Data Configuration, under Applications, click NetSuite Predictive Applications.
4. On the NetSuite Predictive Applications page, click Create, in step 1 of the NetSuite Predictive Applications wizard, select Oracle NetSuite Predictive Analytics Applications in Offerings, select Stockout Prediction in Functional Area, and click Next.
5. In step 2 of the wizard, select the parameters to use for the functional area that you've selected and click Next:
   • Months of data to use – Specify the past number of months data to use for prediction. Enter a number between 1 and 24.
   • Duration for Stockout Prediction – Number of weeks into the future the application uses to predict if a given item goes out of stock. Up to 8 weeks.
   
   

   

   
   
6. In step 3 of the wizard, review your selections for the functional area activation and click Next.
7. In step 4 of the wizard, select when to initiate the functional area activation and click Finish.