How do I explain clearly to our COO why incomplete warehouse inventory data means we can’t yet deploy demand-prediction models?
Here’s a simple, no-fluff way to explain this to your COO:
Use a relatable analogy + a plain-language example.
Analogy:
“Imagine trying to plan meals for a month without knowing what’s in your fridge. You might think you have enough ingredients, but you’re missing key items—or worse, you buy duplicates you didn’t need.”
Example Scenario:
Let’s say you want to predict next quarter’s demand for Product A.
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The model needs two things:
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Historical sales trends (what customers have ordered).
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Accurate inventory snapshots (what was actually available to sell).
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Why incomplete inventory data is a blocker:
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If warehouse records are missing or outdated, the model can’t tell whether low sales were due to weak demand or empty shelves.
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For example:
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Week 1: System says you had 500 units in stock, but you really had 0.
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Week 2: It shows 200, but 100 were damaged and unsellable.
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When the model looks at that data, it assumes demand was soft—not that the product was unavailable. So its forecast is wrong by design.
3 clear reasons this is a problem:
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False Negatives: The model underestimates demand when stockouts weren’t recorded.
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Misallocation: It will recommend production cuts or reduced reordering—risking lost revenue.
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No Benchmark: You can’t tell if promotions or seasonality are driving demand without knowing actual stock levels.
How to frame it constructively:
“This isn’t just about data hygiene—if we feed incomplete inventory data into the prediction model, we’re effectively training it to make decisions based on fiction. That means we could end up with production plans that are completely detached from reality.”
Bottom line to share:
Until we reconcile inventory records, any demand prediction model will be guessing—and guessing is worse than doing nothing, because it gives us false confidence in bad decisions.
What you can offer as next steps:
“Let’s focus first on closing the inventory data gaps so when we do deploy a model, it’s grounded in real, reliable information. That way, we know we’re making decisions we can trust.”
This explanation is clear, relatable, and helps your COO see why the problem matters—without resorting to technical jargon.