Russian Retailer Launches Its Own AI-Powered Demand Forecasting System

Magnit, one of Russia’s largest retailers, is rolling out a homegrown platform for demand forecasting and inventory management, aiming to build a fully independent digital supply chain infrastructure.

Magnit has begun implementing its proprietary system for forecasting demand and replenishing stock. The domestic platform is designed to create an independent digital backbone for managing supply chains across the country.

The new system covers every stage of product movement and factors in a wide range of parameters by leveraging artificial intelligence and machine learning. It is entrusted with planning supplier orders and deliveries to stores, calculating requirements for each individual item. The technology processes massive volumes of data and can predict operations up to three months ahead.

Its architecture prioritizes speed, fault tolerance, and flexibility for adapting to new retail formats.

According to the company, the economic impact will be felt within several years and is expected to reach tens of billions of rubles (hundreds of millions of USD). Full deployment will cut inventory levels in stores and distribution centers while increasing product availability.

A pilot project has already been launched at a distribution center in Kirov, connecting more than 600 stores in nearby regions. By 2027, the system will operate in 3,000 stores and cover an assortment of 10,000 product categories.