Forecasting and Demand Planning

 Executive Summary

  • The organization operates a diverse business model, supplying products across multiple channels. As a result, demand for individual SKUs can fluctuate significantly, making accurate forecasting and inventory management crucial for sustaining growth.

    The existing tools lacked flexibility, making it difficult and time-consuming to identify and respond to external factors influencing demand fluctuations.

  • Following the project to restructure the data architecture and governance, the business was well-positioned to segment data and identify deviations and trends effectively.

    Given the high cost of integrating business data with off-the-shelf planning tools, we opted to develop our own planning and forecasting solutions in-house.

    We created statistical models using Python and developed visualizations with Power BI. This internal development allowed us to produce customized reports that addressed the specific needs of the business more effectively.

  • The complexity of the organization's channels and product range needed continuous refinement of forecasting and demand planning tools.

    Following the development of a structured framework and statistical models, the business achieved a 50% reduction in out-of-stock rates and established a more stable purchasing process. These improvements enhanced inventory management and cash flow.

    The tools now offer long-term visibility into potential stockouts and overstock situations, enabling proactive and strategic management of each product and category. This includes identifying demand peaks and troughs influenced by specific customer behaviors

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