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APPROACH

The approach to address the client’s challenge included:

  • Gleaning insights on how to reduce costs associated with excess inventory from the client’s warehouse and distribution center
  • Segmenting brands where the demand was signi?cantly over-forecasted; this was done on the basis of attributes such as seasonality, competitiveness, new products, etc
  • Putting in place course correction factors to reduce over stocking and improve case ?ll rates though identi?ed metrics

KEY BENEFITS

  • The solution improved forecasting for high revenue items through demand correction factors, thereby reducing costs signi?cantly
  • It enabled continuous monitoring of the forecast performance, resulting in a strong feedback loop for corrective actions

RESULTS

The client was able to optimally match demand to supply and also reduce costs incurred due to excessive inventory and lost sales. We were able to enhance the forecast for improved business planning for the client.

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