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

1. Inventory Optimization Solution
Smart math that works for your business!

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. 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. 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. 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. 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. 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. 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. 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. 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. Product
Goods4Cast Interface

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. 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. 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. 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. Customers
Among our customers:

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. 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. 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. 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. 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. 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. 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. 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. Contacts
Sergey Kotik
Goods4Cast
E-mail: kotik@goods4cast.com
Mobile: +7-968-749-99-48
Skype: Kot_serg9