Solution
Demand Forecasting Solution
Solution
Demand Forecasting Solution
Industry
CPG
Region
AMER
Context
With a myriad of SKUs and a market influenced by factors like seasonality, regional variations, and product innovation, manufacturers face unique challenges in managing their production costs effectively. A data-driven approach not only helps optimize production schedules and reduce excess inventory but also enhances overall operational efficiency.
Problem statement
In the absence of an effective manufacturing demand forecasting model, they faced problems such as less-than-desirable accuracy in forecasting orders, costly inventory management due to insufficient or excessive inventory, inability to meet retailer demands on time, last-minute staffing and operational changes, etc. There were also other challenges in data collection, processing, and consumption such as data silos, lack of standardized processes etc.
Impact
- Improved manufacturing demand forecasting accuracy by up to 15% across key market categories and SKUs.
- Estimated $2 million impact by allowing for a refined production schedule.
- Scalable automated framework for more SKUs and geographies in the future.