A local model fits a separate function to each series. A global model fits one function across the group, so an observation from one product can influence the parameters used to forecast another. The formal distinction comes directly from work on locality and globality in groups of time series. That work also warns against treating global models as useful only for similar series: shared fitting can apply more broadly, but its practical value still depends on the forecasting problem and evaluation design.[S22]
For an apparel launch, the shared function might learn how early sales evolve after release, how price bands alter the level, or how a channel changes the ramp. Each product need not have enough observations to identify all those relationships alone. The global fit pools statistical evidence for common structure. Product identity, static attributes or a local component can then retain differences that the common structure should not erase.
This mechanism is not the same as averaging every historical series into one launch curve. Complete pooling would impose a common answer. A useful global model can represent product-specific inputs, varying scales and different launch dates while sharing parameters across the corpus. The design question is which structures are shared and which are allowed to vary. That choice should appear in the model register rather than remain implicit in a software default.
9.2 Pooling changes the evidence unit, not the demand definition
The training unit is usually a product-time observation. The transfer claim, however, concerns a new product, launch, channel or market. Those units are not interchangeable. Hundreds of weekly rows from one successful style do not provide hundreds of independent examples of how new styles perform. The evaluation register therefore counts independent launches alongside row counts and records family, channel and seasonal dependence among them.
The target definition must also remain constant across the shared corpus. One source cannot contribute gross orders while another contributes fulfilled sales unless the model is explicitly designed for separate targets. Returns, cancellations, listing exposure and stockouts require the same discipline. Otherwise, the global learner may be excellent at predicting differences in data collection rather than differences in demand.
Scale creates a related risk. High-volume products can dominate a loss calculated over raw units, while low-volume variants become numerically irrelevant. Normalisation, weighting or a relative loss can alter that influence, but each remedy introduces an assumption. The chosen scheme should reflect the planning decisions that matter. It should not be selected merely because it produces a flattering aggregate score.
9.3 Shared learning needs a visible route from corpus to forecast
The derived architecture in Exhibit 40 separates the evidence corpus, shared learner, local launch state, predictive output and evaluation control. It is a proposed GFT design, not a claim that this service has already produced a measured result. Its main safeguard is that the launch-replay gate sits outside the learner and can reject the entire transfer path.
The local launch state deserves particular attention. Before the first sale, it contains the product's attributes, offer, channel and frozen prior. After valid observations arrive, it can also contain an updated level, residual pattern or posterior state. A model that silently replaces the pre-launch logic with a different post-launch rule makes its own backtest difficult to interpret. The service should version both states and record when each became eligible.
9.4 Relevance is a condition of borrowing, not a property of model size
A large external corpus can still be irrelevant to the target launch. Products may differ in use occasion, price, distribution, return policy or selling season. Even technically correct histories can teach the wrong relationship when the customer and channel differ. Relevance therefore begins with a documented reference population, not with the number of parameters or observations.
The inclusion register should state why each source launch belongs, which attributes were harmonised and which exclusions were applied before outcomes were examined. Failed and withdrawn products belong in the same frame when their records are valid. Otherwise, shared learning inherits a survivor-heavy account of launch demand. Where suitable analogues are scarce, the honest output is a wide prior and an evidence-collection plan, not a more flexible learner.