Development of Cloud Based Demand Forecasting System: A Case Study in Stationery Industry

Stationery industry has been facing inventory problems. Having too much unsold inventory leads to increasing of warehousing cost while not having enough inventory will cause lost sales. We propose a digital transformation project, using Amazon Forecasting to make a better demand prediction so company can solve these problems. Framework used in this paper is Digital Maturity Model from TM Forum. Amazon Forecasting will produce forecast scenario based on the data provided. Finally, we proposed a digital roadmap to help company execute this project. Based on the research, it can be concluded that cloud-based demand forecasting is feasible to to solve inventory problems as the technicality requirement and cost needed is affordable by small medium enterprises. By using AWS, company can have better prediction without having an expertise in forecasting technique. The outcomes of this research can be used by other company to plan digital transformation in forecasting.