How we forecasted demand in retail

Customer Challenge

  • Our client in the meat industry has a portfolio of thousands of products, selling daily in various shop locations.
  • To streamline & plan the supply chain it is of major importance that a retailer performs demand forecasting to plan their purchasing, production & logistics requirements.
  • Most organisations perform (semi-)manual demand forecasting where planners manually plan thousands of products across an incredible amount of stores.

Approach

  • The objective of this project was to streamline the supply chain by first forecasting demand smartly based on historical sales.
  • Secondly, this forecast was used to run a dynamic distribution requirement planning showing when to order and, where and what to deliver.
  • We leveraged 3 years of historical data and defined a predictive approach where we could predict sales up to 100 days ahead, taking into account weather, promotions, seasons & special events (holidays, festivals, etc.).

Results

Using this data-driven approach, we facilitated and accelerated supply chain planning, and we increased the forecasting accuracy.

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