Transforming Demand Planning with Advanced Analytics

$1B INDUSTRIAL PRODUCTS COMPANY

Background

  • $1B+ industrial products company needed to improve demand planning and forecasting
  • Monthly forecasting process was time-consuming and forecast accuracy was only 50%
  • Company lacked any formalized statistical forecasting component
  • Poor forecast accuracy led to suboptimal inventory levels across the entire supply chain
  • Company engaged us to develop a custom solution to streamline the process and boost accuracy

Contributions

  • Built a proprietary data driven forecasting algorithm leveraging 15+ statistical, machine learning, and AI techniques
  • Developed a custom demand planning tool that integrated the advanced algorithm and enabled the sales team to provide valuable insights and inputs to the forecast
  • Conducted rigorous testing and validation to ensure the robustness and reliability of the algorithm and tool

Results

  • Increased forecast accuracy from 50% to 75%, enabling better supply chain planning and inventory management
  • Reduced the monthly forecasting process time by over 70%, significantly improving efficiency
  • Provided the client with a powerful, custom tool to streamline their demand planning
  • Delivered a scalable and flexible solution that can adapt to the client’s evolving needs
  • Enabled the client to make more informed, data-driven decisions and improve overall business performance