Supply Chain Analytics Helped a Distilled Spirits Manufacturing Major to Improve Their Demand Forecasting Efficiency

Mar 1, 2023

What You’ll Find in this Case Study:

  • About the Client
  • Industry Overview
  • Demand Forecasting Efficiency Business Challenge
  • Demand Forecasting Efficiency Solution and the Business Impact
  • Demand Forecasting Efficiency Solution Insights

About the Client

Client: A distilled spirits manufacturer, Size: $1.5 billion in revenue, Area of engagement: Supply chain analytics

Industry Overview

Distilled spirits refer to an alcoholic beverage manufactured by distilling the mixture produced from alcoholic fermentation. The distillation process is majorly applied to increase the alcohol content by reducing the diluting components such as water. Major factors propelling the growth of this market include steadily growing adult and young demographic worldwide and increasing demand for alcoholic beverages among consumers. Additionally, the advanced distribution channel including outlets in airports, online sales, and separate counters for females is another factor, propelling the demand for alcoholic beverages, thereby, conferring a boost to the global distilled spirits market. Furthermore, new product development and the innovation plays an important role in the distilled spirits market as the demand for these products largely depends on changing preferences and tastes.

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Demand Forecasting Efficiency Business Challenge

The client, a major in distilled spirits manufacturing with business units spread across the globe, wanted to develop an effective solution model to enhance end-to-end supply chain visibility to achieve high customer satisfaction during order fulfillment. Additionally, the client also wanted to develop a solution for end-to-end supply chain visibility and identify the areas of optimization to ensure greater product delivery.

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Demand Forecasting Efficiency Solution and the Business Impact

The distilled spirits manufacturer was able to overcome challenges that were affecting on-time and in-full delivery failure with the help of Quantzig’s supply chain analytics. The client also identified key factors to ensure that the on-time and in-full delivery was greater than before. Moreover, a multi-source data integration facilitated an end to end visibility on supply journey of each product right from manufacturing to order delivery.

Demand Forecasting Efficiency Solution Insights

Quantzig’s supply chain analytics help firms in the food and beverage industry space to re-strategize their sourcing locations by analyzing the impact of supplier location and transit times on the design-to-market time of a product. Companies can also improve demand forecasting efficiency post automation of the sales-order process with the help of these solutions.

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Our analysis of the global food and beverage industry shows that distilled spirits manufacturers are facing challenges in terms of:

  • Altering consumer preferences: Today, consumers have become more informed and can gain access to a wide array of information in terms of the ingredients used in the final product offerings. Therefore, the altering preferences of the customers are compelling business providers to offer products that are in sync with the needs of the customers.

  • High competition: The distilled spirits manufacturing industry is facing a growing competition with many companies offering innovative products. With the growing threat in the number of new entrants, establishments are facing the need to improve their production efficiency while promising the right quantity and quality at the right time.

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