Demand Planning & Forecasting for an ICT Major

Aug 29, 2016

Business Challenge
A leading ICT major in US wanted to streamline demand planning and forecasting and have better order fulfillment ratio.
The client was facing issues due to high number of unfulfilled orders, inaccurate demand forecast model and high inventory & finish goods holding costs due to incorrect planning.
We reclassified products/SKU based on sales revenues to achieve a comprehensive demand planning process incorporating seasonality, lead times, & events based forecast. We also setup a review mechanism for A & B class SKUs and direct forecast setup for C class SKUs.
Based on the new process the client gained insights on root causes of fulfillment issues & achieved 27% reduction in unfulfilled orders and the forecast accuracy increased to 91%. Client gained $150mn savings on order fulfilment and inventory costs.
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