Streamlining Supply and Demand Through a Collaborative Planning Solution

Solution Collaborative Planning Tool
Solution Collaborative Planning Tool
Industry CPG
Region US
Technology Microsoft Azure
Context
A leading CPG conglomerate in the food and beverages sector faced persistent challenges in supply chain planning due to fragmented and inaccurate demand signals from over 100 global and local distributors with varying data capabilities. Standard forecasting solutions failed to address their complex workflows, leading to inefficiencies in supply planning. To solve this, we developed a custom collaborative planning tool to integrate seamlessly into the client’s existing ecosystem. This solution aligned stakeholders, incorporated commercial and operational constraints, and optimized demand forecasting. By enhancing inventory placement and improving forecasting accuracy, our approach transformed the client’s last-mile supply planning, driving efficiency and agility across their supply chain. 
Problem statement

Our client, a global CPG leader in the food and beverage industry, struggled to capture accurate demand signals from over 100 local and global distributors, each with varying levels of data and analytics maturity. This fragmented distributor landscape led to inconsistent inputs, resulting in unreliable demand planning and forecasting. As a result, the client faced significant operational inefficiencies — weekly demand forecast accuracy was off by 30–45%, inventory holding costs were inflated by up to 15%, and order fulfillment rates were pushed nearly 10% below industry benchmarks. 

Attempts to deploy off-the-shelf forecasting tools failed. These solutions could not accommodate the client’s complex workflows, multi-channel order systems (SAP, email, non-traditional portals), or the needs of key internal stakeholders orchestrating the supply chain. The lack of a unified, dynamic planning approach exacerbated the gaps, leading to frequent stockouts, surplus inventory, and missed sales opportunities — with distributor data compliance rates dropping below 70%. 

 

Impact

  • $32M savings unlocked through excess inventory reduction in the first year of solution deployment.
  • 14-17% reduction in out-of-stock scenarios achieved across three core product categories.
  • Delivered agile production planning with a solution that adapts to weekly market changes.  

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