Check out how we’ve helped a Leading Manufacturer to Improve Forecast Accuracy!
More accurate demand forecasts optimize inventory and improve customer service
Facing a growing number of overstocks and out-of-stocks, a leading global manufacturer from Global Fortune 500 list with a large number of products and distribution channels decided to invest in better, more accurate demand forecasting capabilities.
Low forecast accuracy impacting supply chain management planning
Production volume planning was highly manual, making the process time-consuming and slow. Over- and underestimation of production hurt the business with suboptimal inventory costs, missed sales opportunities, and a lower Customer Service Level.
The manufacturer invited several technology partners to compete to provide an automated solution that would achieve the lowest monthly forecasting error rates for hundreds of SKUs in several countries. The solution was to be designed to offer full process visibility, improve forecast accuracy, minimize inventory costs, and maximize customer satisfaction.
Advanced analytics as a key step to data-driven planning
Taking into account the manufacturer’s plans to use the solution in many more regions and with a greater variety of data sources, Lingaro proposed an easy-to-scale, cloud-based tool that can fully adjust to the manufacturer’s specific needs. Lingaro’s Data Science team formulated a combination of several Machine Learning models that not only used the manufacturer’s data to deliver the highest forecast accuracy of any solution under review – including off-the-shelf solution from well-known international player – but also enhanced data to better account for seasonality. With this solution, daily forecasts for hundreds of products distributed through thousands of channels are generated automatically in user-friendly dashboards. Demand planners now have full visibility into all processes and can make adjustments as necessary to reflect special cases.
Accurate demand-driven production planning with a tailored solution. Lingaro’s fast, agile project execution allowed the client to begin seeing added value from the solution almost immediately.
The improved forecasts have supported better-organized processes that deliver several key benefits:
Quicker, more strategically focused decision-making thanks to the automated solution that helps staff minimize manual workflows and avoid struggling with raw data sets.
Supply chain cost savings as a result of demand-driven production based on more accurate forecasts.
Increased customer satisfaction with reduced probability of late shipment penalty fees.