Outlier Detection and Correction

This article is a comprehensive guide to managing sales outliers. It begins by dissecting the root causes of outliers in sales order data. Then, it proceeds to critique the limitations of conventional outlier management methods. More importantly, our guide introduces our unique approach to addressing outliers: a dual solution centered on identifying and removing erroneous data while integrating business drivers into our predictive model.

Nicolas Vandeput
8 min readJul 5, 2023

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Outliers in supply chain data are more than mere statistical aberrations. These disruptive elements threaten to make your demand forecasts irrelevant, ultimately hindering supply operations. Anomalies in sales data present significant challenges to supply chain planners, who routinely find themselves immersed in laborious manual data-cleaning activities.

Causes of Outliers: Errors and Business Events

Outliers in sales data are often more than meets the eye. They can be traceable to many causes, broadly falling into two principal categories: Erroneous Data Entries and Legitimate…

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Nicolas Vandeput

Consultant, Trainer, Author. I reduce forecast error by 30% 📈 and inventory levels by 20% 📦. Contact me: linkedin.com/in/vandeputnicolas