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Multiple CPG Demand Forecasting Implementations

The Opportunity

  • Several of our CPG clients have similar challenges with demand forecasting.  How to produce accurate, statistically-sound forecasts for tens of thousands of item/locations in a short amount of time, while minimizing human intervention?

Our Approach

  • Our proprietary system for mass producing forecasts does so at all levels of the hierarchy, scientifically tuned to select the best algorithm for each item.  It runs at scale, producing hundreds of thousands of forecasts in a matter of hours.
  • Though the system is proprietary, we teach our clients how it works, and how to expand and maintain it.

The Impact

  • Clients report gains ranging from 7% to, in one case, double-digit gains across all categories.
  • Many hours of staff time have been reduced, as the system directs planners to a small number of items that may require a human touch beyond the statistical forecast.
  • The companies are less reliant on, but still integrate with large commercial demand planning software, which lacks this analytical power and capabilities.
  • The clients have built their internal know-how for statistical demand planning.
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