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Goods4Cast - Inventory Optimization Solution


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Cloud service for maintaining optimal inventory level, based on demand forecasting

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Goods4Cast - Inventory Optimization Solution

  1. 1. Inventory Optimization Solution Smart math that works for your business!
  2. 2. Milestones 2000 – Forecsys company (the holding company of Goods4Cast) was founded, basing its work on the scientific school of RAS academic Yury Zhuravlev. The company's founders are graduates of and professors at MSU and MIPT. 2005 – The first version of Goods4Cast solution was released. It was implemented in TD Perekrestok retail chain. 2008 – Goods4Cast won the Cnews Awards contest as the best IT solution for retail modernization of 2007 2012 – Goods4Cast won the open contest of FASIE (Bortnik`s fund). 2013 – Goods4Cast became a Skolkovo resident with the project of cloud-based inventory optimization service.
  3. 3. Target Audience Для кого & Wholesalers Retailers Annual revenue > $1 000 000 Offline retail, e-commerce, multichannel commerce Any business field (FMCG, CE, pharmaceutical, apparel, DIY, sports…)
  4. 4. Problems G4C solves Для кого Overstock Out-of-stock Goods4Cast answers the questions: What? When? How much? Where? Whenever a company has to order from the suppliers. Uncontrolled process Excessive man-hours
  5. 5. Для кого Solution ERP, e-commerce Data 1. Forecasts Analytics Orders 2. Recommendations 3. Orders Notifications Cloud service for maintaining optimal inventory level, based on demand forecasting
  6. 6. Market Russia and CIS TAM: $2 200 000 000 SAM: $200 000 000 SOM: $50 000 000 (25% от SAM) USA TAM: $15 000 000 000 SAM: $6 000 000 000 SOM: $60 000 000 (1% от SAM) Other countries (EU, South Eastern Asia, BRICS) TAM: $54 000 000 000 SAM: $24 000 000 000 SOM: $360 000 000 Market volume is calculated as: Number of customers * Goods4Cast average annual fee ($6000). US Census Bureau and Federal Service of State Statistics of Russian Federation data was used.
  7. 7. Competitors SMB Large Enterprise Russia Lokad JDA Inventor Valogix Logility Deductor Blue Ridge IBM Inventory Optimization Synchron EazyStock Oracle Inventory Optimization SAS Inventory Optimization Just Enough Detailed competitive landscape information can be found in appendix A There is no available solution for SMB companies that has large enterprise functionality and is affordable and easy-to-use
  8. 8. Product Already Done Library of “TSA” (Time Series Analysis) algorithms, including models for different business fields (FMCG, pharmaceutical, consumer electronics, fashion and others) Customizable Goods4Cast platform – supply chain management solution On-premises product line based on Goods4Cast platform: Goods4Cast.Planning, Goods4Cast.Supplies, Goods4Cast.Replenishment Web-version of Goods4Cast.Replenishment (core functionality) – the base for Goods4Cast SaaS model.
  9. 9. Product In Progress And Planned Goods4Cast web-version enhancement and website development Integration with Acumatica Cloud ERP Integration with 1C ERP Integration with Microsoft Dynamics ERP product line Development of mathematical models for e-commerce
  10. 10. Product Advantages Fundamentally more powerful unique mathematical engine Integration technologies that allow for product implementation in 1 day without any IT specialists Fully cloud-based solution - secure, stable, and fast Easy to operate and user-friendly solution Real focus on SMB
  11. 11. Product Goods4Cast Interface
  12. 12. $ Для кого Value Additional value: 2-5% of revenue Average monthly reduction of SKU (stock keeping unit) costs: $1 Stock level reduction: 10-30% Lost sales reduction: 30-50% Demand forecasting accuracy increase: 20-50% Inventory management & man-hours reduction: 70-90%
  13. 13. Business Model $ Partners Channel SaaS $ LE Implementations $ $ SMB Subscription model 5 plans – from Free to Individual Average monthly price $500 Large Enterprise Perpetual license + Time&Material Average implementation price - $100 000 (“Big” solution cheaper than Oracle, SAS, JDA, IBM) Technical support $10 000/year SMB, Large Enterprise Subscription or Perpetual license Plans depend on partner sales model Partner shares revenue
  14. 14. Plans Russia Micro Business Free! Basic Functionality: 1. <1 000 SKUs 2. Automated demand forecasts 3. Order dates and quantities recommendations 4. KPI dashboards, reporting tools, and alerts 5. Export to Excel Small Business 2999р/month Medium Business 12999р/month + Inventory Management Automation: 1. <5 000 SKUs 2. Automated forecasting for holiday periods 3. Safety stock optimization to meet service levels 4. Multi-item purchase order recommendations 5. Export to ERP + Higher Level of Optimization: 1. <10 000 SKUs 2. Automated analogue-based forecast for new items 3. Fully automated safety stock optimization (service levels chosen to maximize profitability) 4. Automated supply frequency recommendation 5. Accounting for suppliers’ terms (order amount, quantity, volume, weight etc.) Large Enterprise 32999р/month + Most Powerful Tools: 1. <50 000 SKUs 2. Promotions forecasting and decision support 3. Distribution center inventory optimization 4. Suppliers` discounts analysis 5. Optimal supplier selection recommendations Individual By request + Customized Solution: 1. Unlimited SKUs 2. Forecasting with any additional factors 3. Seamless integration to any existing IT solutions 4. Tuning and analytical support 5. Functionality customization
  15. 15. Plans 90% of Distribution Management Suite price ($300 - $3500 Per Month) VAR`s margin is the same as with Acumatica sells (40%) SaaS, SOP, On-premises models
  16. 16. Customers Among our customers:
  17. 17. Customers Existing Customers (LE) Baltika (brewery manufacturer) Lama (FMCG retailer) TehnoNikol (construction materials manufacturer) Tonics (FMSG wholesaler) Dochki&Synochki (retailer) Prospects (LE) Prospects (SMB) Prospects (Acumatica) ~70 large companies of Russia, Ukraine, Apiko-fish (sporting Belarus goods) eRecycling OhYeah! (fashion) BeautyLand (cosmetics) Tea Journey (tea sore) Russtandart (pharmaceuticals) Best Buy Egypt (2B systems)
  18. 18. Exit Strategies Acquisition/Merger by competitors JDA, IBM, Oracle, SAS,… Acquisition/Merger by partners/potential partners (ERP developers, e-commerce platform developers, VARs) SAP, Oracle, Microsoft, NetSuite, Acumatica, 1C, Magento, ZenCart, Virtuemart, Shopify, IBS, … IPO Moscow Stock Exchange, London Stock Exchange, NASDAQ Foreign investment fund focusing on private technological companies
  19. 19. Finance $800 000 for 2,5 years For cloud service development and marketing in Russia and USA $100 000 – SaaS 1C and Acumatica R&D (11.2013 – 06.2014) $200 000 – Marketing Russia (07.2014 – 12.2014) $500 000 – Marketing Russia and USA (01.2015 – 06.2016)
  20. 20. Legal Structure OOO “GoodForecast” (Goods4Cast) is a subsidiary of ZAO “Forecsys” (Forecsys) Stakeholders of Forecsys are 3 natural persons Forecsys controls 100% of Goods4Cast shares Goods4Cast management (CEO, CAO, CBDO) has a 3 year option
  21. 21. Awards & Support 2008 – Goods4Cast won the CNews Awards contest as the best IT solution for retail modernization of 2007 2012 – Goods4Cast won the open contest of FASIE (Bortnik`s fund) 2013 – Goods4Cast became a Skolkovo resident with its project of cloud-based inventory optimization service.
  22. 22. Team Andrey Lisitsa, CEO 30 years old. Graduate of CMC MSU. 7-year experience of successful project implementation with leading Russian companies (Svyaznoy, Baltika, RZD, 7 Continent and others) in the field of demand forecasting and inventory management and optimization. Sergey Kotik, CBDO 30 years old. Graduate of CMC MSU. 8-year experience of successful IT project implementation in the field of BI and e-commerce, including Ochkarius startup launch. Author of more than 10 academic articles on economics and engineering.
  23. 23. Team Konstantin Vorontsov, PhD, Scientific Director 42 years old. Graduate of MIPT. PhD. Konstantin won the RAS award for young scientists. Author of more than 100 academic articles on mathematics and engineering. Author of more than 10 patented software solutions. Lecturer at MSU, MIPT, HSE, Yandex DAS. Daniel Kanevskiy, CAO 30 years old. Graduate of CMC MSU. 7-year experience of BI solutions methodology and mathematics engine development including inventory management and optimization solutions. Key team member in more than 30 demand forecasting and inventory optimization projects. Business analyst, researcher. Lecturer at Lyceum of Information Technologies №1533.
  24. 24. Advisers Yuriy Chekhovich, PhD 37 years old. Graduate of MIPT. PhD. 12-year experience of successful IT company management. CEO of Forecsys. COO of Antiplagiat. Lecturer of MSU, MIPT. Nick Mitushin, PhD 33 years old. MIPT graduate. PhD. 12-year experience of successful IT company management. Co-founder and CEO of TFunnel (American company). Co-founder of Rise Technology Ventures.
  25. 25. Contacts Sergey Kotik Goods4Cast E-mail: Mobile: +7-968-749-99-48 Skype: Kot_serg9