Integrated demand planning

Challenge

Solving the complex supply chain. Here’s how..

In a complex supply chain scenario, client intended to have world-class, analytically driven, closed-loop, and integrated demand planning process Intro – The client, a technology major, has multiple manufacturing partners, distribution channels, and customers at diverse geographic locations. In this complex supply chain scenario, client intended to have world-class, analytically driven, closed-loop, and integrated demand planning process supporting demand planners.

The client, a technology major, has multiple manufacturing partners, distribution channels, and customers at diverse geographic locations. In this complex supply chain scenario, client intended to have world-class, analytically driven, closed-loop, and integrated demand planning process supporting demand planners and turned to Cognitive Digital for building it. The company improved its existing forecasting process by integrating new external data sources and developing machine learning ‘best fit’ algorithms.

Approach

• Product segmentation based on the forecastability was established

• Enhancement of the existing time series forecasting algorithms

  A new way of forecasting was created to enhance demand planning

• Selection of the best business streams among the sales, distributor, finance, and marketing projections

• Exploration and augmentation of the sales pipeline, install base, and econometric drivers. Forward-looking sales pipeline signal integration in the demand forecasting

Key Milestones

$100 million in savings

Initiatives designed for this complex supply chain brought in a saving of 100million USD

17% increase in planning accuracy

Planning was deeply corrected through this exercise and a 17% accuracy in planning was achieved

8% increase in lead time attainment

Every step of the supply chain was assessed, rebuilt and measured to arrive at an 8% increase in lead time