How AI-Driven Demand Planning Is Transforming Fashion Supply Chain
Your Best Seller Flopped. Now What?
It should have flown off the shelves. But instead? It’s stuck – buried in your warehouse, tying up cash, collecting dust.
Meanwhile, another retailer sold out of a similar style in a week.
What did they do differently?
They didn’t guess. They knew.
Too Much, Too Little – Fashion’s Stock Problem Is Killing Margins
Get it wrong and you’re either drowning in excess stock or missing out on sales.
Fashion retailers lose $210 billion every year due to poor demand planning – either ordering too much or too little (McKinsey, 2023).
- Order too much – You’re stuck with unsold stock, slashing prices to clear it.
- Order too little – Customers go elsewhere and you lose sales.
The real problem? Past sales data can’t predict the unexpected.
- A celebrity wears your product – demand explodes overnight.
- A heatwave arrives early – your summer range sells out too fast.
- A TikTok trend dies overnight – you’re left with stock no one wants.
Fashion demand is unpredictable. This is where AI makes the difference.
How AI Is Transforming Demand Planning in Fashion
- Live Sales & Customer Behaviour Tracking – AI continuously monitors real-time sales trends to make instant stock adjustments.
- Trend & Social Media Monitoring – AI scans influencers, search trends and social platforms to predict demand before it peaks.
- Weather & Economic Impact Analysis – AI factors in weather patterns, inflation rates and global events that affect shopping behaviour.
- Machine Learning for Smarter Reordering – AI learns over time, refining stock recommendations for even more accurate forecasting.
Retailers using AI aren’t guessing anymore – they’re making data backed stock decisions that work.
The Benefits – More Sales, Less Waste, Happier Customers
Brands using AI-driven demand planning see real improvements:-
50% Reduction in Overstock – Less unsold stock, fewer markdowns, and healthier margins (Boston Consulting Group, 2023).
65% Fewer Stockouts – Bestsellers stay available, and customers don’t turn to competitors (McKinsey, 2023).
- More Efficient Cash Flow – Money is tied up in the right stock, not in slow-moving inventory.
- Less Waste, More Sustainability – AI reduces overproduction, helping brands become more eco-friendly.
And customers notice. They remember when a store always has what they want. They also remember when it doesn’t.
Where Stok.ly Cloud ERP Fits In
AI-driven demand planning is revolutionising retail, but it needs to be part of a larger, connected system. That’s where Stok.ly Cloud ERP comes in.
Stok.ly integrates real-time sales, Multi-Channel inventory management and automated stock control, ensuring:-
- Accurate stock tracking across all channels.
- Faster, smarter reordering to keep up with demand.
- Seamless integration with eCommerce, warehouses and retail stores.
By combining AI insights with Stok.ly Cloud ERP’s powerful inventory management, retailers can stop making stock decisions based on guesswork and start operating with precision and confidence.
Still guessing? Or is it time to let AI help you get it right?
Click here for more information about Stok.ly Cloud ERP
Call us on 01432 804333
Author: Iain Coplans CEO Stok.ly