Case Study:
Demand Planning
Optimising safety stock parameters to enhance the efficiency and availability in demand planning.
Case Study:
Demand Planning
Optimising safety stock parameters to enhance the efficiency and availability in demand planning.
Client Challenge
A leading FMCG retailer encountered suboptimal safety stock levels after transitioning to a third-party forecasting solution.
Their focus on waste reduction inadvertently compromised product availability, resulting in stockouts.
The Solution
Developed simulation models to optimise safety stock parameters to minimise waste and maximise availability.
- A discrete event simulation framework was used to optimise safety stock parameters.
- Expert-set parameters were replaced with data-driven optimal values to ensure effective response to market changes.
- Statistical techniques were employed to fine-tune parameters for enhanced planning efficiency.
- Data models and pipelines were developed to enable periodic optimisation, providing the client with updated information.
Solution Value
Our robust, scalable cloud based solution enables dynamic responses to market changes, maintaining high product availability while reducing waste, and ensuring agile operations.
- $2.2 million in annual recurring savings.
- 7% improvement in availability of perishables.