CASE STUDY

Order Management Model helps a Leading Sports Goods Manufacturer Improve Accuracy of Demand Forecasting

Sep 23, 2016

Business Challenge

Inefficient order management process resulting in low customer satisfaction levels.

A leading sports goods manufacturer was facing issues in managing orders of customers in an efficient manner, which was causing a negative impact on customer satisfaction levels, and profits in turn.

Situation: Issues with managing orders in an efficient manner from various distributors and retailers.

As a result of the shortcomings in the order management system, the client was facing issues with stock-outs, largely unused and out of date inventory items, and delayed shipments.

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Solution

Predictive modeling to build an efficient order management solution.

We conducted an in-depth analysis of the existing inventory data to cluster products based on sales, stock levels, and lead times, at an individual distributor and retailer level. Based on this information, we built an order management model.

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Impact

Improved accuracy of forecasting demand levels, resulting in improved profit levels.

The client was able to increase profits and supply chain efficiency by accurately predicting the inventory levels and sales at an individual distributor and retailer levels. This helped the client in eventually improving customer satisfaction levels over a period of time.

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