Business complexity is growing, driven by multi-channel marketing, demand shaping (media, promotions, new product introductions), and internet buying behaviour. Unfortunately most companies are still forecasting based on cumbersome algorithms and time series of aggregated sales history. This inability to analyse and take advantage of newly available data is causing forecast accuracy to get worse when it could be getting better. Lora Cecere of Supply Chain Insights shows that food manufacturers have “…lost 1% in operating margin and have increased average inventories by 22% over the last decade”.

The good news is that most food and beverage companies already have the data they need to achieve big improvements in their supply chain. Armed with powerful demand analytics and supply chain optimisation tools, our customers move towards a market-driven forecast. They capture and model the market attributes that impact demand, generating more signal and less noise, and improving the forecast, inventory and service levels.

Food and beverage companies achieve sustainable service levels as high as 99+%, usually with about 20% less global inventory. They increase residual product shelf life, maintain freshness, and minimise spoilage and out-of-date returns.

Demand modelling incorporates internal and external elements such as seasonal demand profiles while demand sensing acquires fresh daily demand data for sensing short-term changes in demand. Inventory optimisation and replenishment delivers high customer service levels, even across multi-echelon networks. It also addresses product expiration constraints, rough cut capacity planning, transportation constraints such as minimum order quantities, and S&OP.

Related Resources

Tiger Brand case study

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Danone infographic

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The Absolut Company

Absolut Supply chain and customer service people collaborate to optimise sales and inventory planning using forecasts generated by SO99+

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