Originally Published on: QuantzigHow we helped a leading spirits manufacturer reduce production costs through enhanced forecasting models
Client Triumph: In a recent feat, Quantzig collaborated with a leading US-based spirits manufacturer, boasting a remarkable revenue exceeding $14 billion. The intricate global supply chain dynamics of their numerous facilities posed challenges, with inaccurate forecasts causing stock-outs and substantial financial losses surpassing $200 million.
Solutions Crafted: Quantzig intervened strategically, delving into SKU demand signals and instituting an advanced SKU classification framework. Harnessing advanced machine learning algorithms, they tailored multiple forecasting models for each SKU. The introduction of automation, incorporating Azure Synapse, Power Automate, Power Apps, and Python, revamped the process, slashing the manual 30-day forecasting to an efficient 4-day automated workflow.
Significant Impact: The results were staggering, showcasing a 10-15% point surge in forecast accuracy, an 80% reduction in forecasting process time, and marked improvements in production planning.
Industry Insight: The US spirits manufacturing industry, a potent economic contributor, relies heavily on accurate forecasting for success. Precise predictions enable manufacturers to optimize inventory, unlocking profitability in this dynamic sector.
Client's Profile: Our client, a distinguished spirits manufacturer facing a 20% loss due to inaccurate forecasting, sought an innovative model for a prosperous future. Their complex operations spanned multiple facilities and warehouses globally.
Overcoming Challenges: The existing 30-day manual forecasting process posed accuracy challenges, impacting production and supply chain planning. A generic forecasting solution overlooked crucial marketing signals, resulting in disconnects, frequent stockouts, and inflated holding costs.
Holistic Solutions Enacted: Quantzig orchestrated a comprehensive four-step approach, encompassing a Demand Forecasting Module, Demand Adjustment Module, Automation Module, and Business Intelligence Command Centre. This involved data enrichment, advanced algorithm incorporation, demand adjustment modules creation, and a robust business intelligence center for profound analysis.
Client's Transformation: Quantzig harnessed advanced analytics and machine learning, dissecting SKU demand signals to craft a robust SKU classification framework. The infusion of advanced algorithms and automation streamlined operations, empowering the client to optimize inventory, curtail financial losses, and excel in the dynamic spirits industry.
