CASE STUDY

Demand Planning and Forecasting Delivers Million Dollar Savings for an Industrial Client

Sep 23, 2016

Business Challenge

Improving demand forecast and optimizing inventory.

A leading industrial client wanted to set up a demand planning and forecasting process and have better visibility on the inventory.

Quantzig offers demand forecasting solutions that enable the supply chain, sales, product, manufacturing, and finance teams to collaborate to create accurate demand and capacity plans in minutes instead of days. Speak with our analytics experts to know more.

Situation

High SKU management costs due to inaccurate demand forecast.

The client was experiencing difficulty in forecasting demand, and planning and fulfilling the orders on time; as a result of which it was incurring high cost in managing 500+ SKUs across 10+ locations.

Solution/Approach

Comprehensive coverage monitoring followed by the usage of multiple translation tools.

We used a statistics-based model with a 3-6 month moving average at the SKU level. We did the classification of products/SKU based on sales and volume, seasonality, lead times, and events based forecast. We also set up a management review methodology for A and B class SKUs, and direct forecast for C class SKUs.

Analyze dynamic demand patterns and improve forecasting capabilities with Quantzig’s advanced supply chain analytics solutions. Request for more information to know how you can leverage our services.

Impact

91% forecast accuracy and million-dollar savings.

The client received best in class demand planning system integrated with the inventory planning system. This helped them reduce obsolescence and inventory stock-outs. They were able to achieve 91% forecast accuracy and million-dollar savings on order fulfillment and inventory costs.

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