At DEIENAMI, we build cutting-edge, API-driven AI platforms that unlock business intelligence. One of our standout engineering projects is a Demand Forecasting AI engine developed as a core backend component for a SaaS product company in the retail-tech space.
This system was designed to eliminate guesswork from inventory planning—helping businesses forecast demand with high precision using historical, seasonal, and external data inputs.
The Business Problem
Inventory mismanagement is one of the costliest operational pitfalls for businesses. Retailers, manufacturers, and distributors face challenges such as:
- Overstocking, leading to dead inventory and wastage
- Stockouts, resulting in lost sales and customer dissatisfaction
- Poor procurement planning due to inaccurate forecasts
- Manual or spreadsheet-based inventory planning lacking real-time adaptability
Our client needed a scalable API-based solution to solve this across multiple customers, warehouses, and product categories—without requiring any frontend component from our side.
The Solution: Forecasting Intelligence at Your Fingertips
We engineered a fully API-driven Demand Forecasting Engine powered by advanced machine learning and time-series models, capable of integrating directly into existing ERP, POS, or inventory systems.
Core Features
- Time-Series Forecasting Models:
- ARIMA for trend and seasonality modeling
- XGBoost for combining transactional, pricing, and promotional data
- LSTM neural networks for sequence learning across dynamic SKU datasets
- Multi-Warehouse & Multi-SKU Support:
Forecasts are customized at product-location granularity, enabling precise decision-making at every stocking point. - Customizable Forecast Horizons:
Supports short-term (daily, weekly) and long-term (monthly, quarterly) forecast windows. - Confidence Scoring & Anomaly Detection:
Every forecast includes a confidence interval. The system alerts if sales patterns deviate significantly from expected trends. - Real-Time API Access:
Plug-and-play architecture for real-time data push and forecast pull, enabling ERP/POS integrations without UI overhead. - External Data Integration:
Optional support to ingest external data like holidays, marketing campaigns, or weather patterns for enhanced accuracy.
Technology Stack
| Component | Technology Used |
|---|---|
| Backend & APIs | Python (FastAPI) |
| Machine Learning Models | ARIMA, XGBoost, LSTM (TensorFlow) |
| Data Storage | PostgreSQL, Redis for caching |
| Deployment | Dockerized microservices on AWS EC2 |
| Monitoring & Logging | Prometheus, Grafana, ELK Stack |
| Security | JWT-based auth, IP whitelisting, rate-limiting |
Results Achieved
- 📉 30–50% reduction in overstocking across use cases
- 🛒 20–40% decrease in out-of-stock incidents
- 📦 Improved reorder cycles and lead-time planning
- 🔄 Real-time adaptability to demand shifts
- ⚙️ Seamless integration with client’s existing multi-tenant SaaS infrastructure
Built for Scale, Built for Security
From day one, the system was engineered to support:
- Multi-tenant SaaS use with isolated data models
- Stateless API design with robust authentication
- Auto-scaling forecast computation jobs for large data batches
- End-to-end logging and traceability for data audits
Who Can Benefit?
This forecasting engine is ideal for:
- Retail Chains: Improve stock turn and shelf availability
- Direct-to-Consumer Brands: Better sync supply with online campaigns
- Distributors & Wholesalers: Plan bulk procurement smarter
- Manufacturers: Align production with realistic market demand
After-Sales Support & Scalability
Although we built only the backend API suite, we supported the client with:
- Extensive documentation & Swagger APIs
- Model retraining guidelines & notebooks
- Ongoing support during integration phases
- Continuous updates to improve accuracy as new data patterns emerge
Why DEIENAMI?
We bring the best of AI + engineering with a focus on clean, production-ready systems. Whether you’re building your MVP or upgrading your enterprise stack, our expertise in backend-heavy, data-intensive systems ensures a faster ROI and long-term maintainability.
Need help with forecasting, automation, or intelligent operations? Let’s talk.
