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Develop, plan and implement product vision: The art of accurate forecasting
CHALLENGE
To be able to deliver immediately when customer needs change, to fill the warehouses in such a way that there are always enough top sellers but as few slow sellers as possible in stock: A challenge for every B2C retailer. All the more so when, in addition to the distribution of articles from other manufacturers, one’s own product development also has to be taken into account. A retail company therefore wants to use automated demand forecasting to better predict demand. DMA is commissioned to develop a product vision and to implement a suitable data analytics solution on this basis.
APPROACH
DMA brings together a total of 25 teams from over ten departments to clarify the requirements in design thinking workshops: Which processes in the company need to be taken into account, what does the appropriate target operating model for the new solution look like? From category management to purchasing, product design, marketing, sales and logistics, all key partners are involved to develop a product vision that meets all needs. On this basis, DMA defines the technical criteria and selects software, providers and suitable algorithms. The result is a demand forecasting solution that enables true integrated planning.
BENEFITS
Initially implemented as a pilot for a single product group and the home market, the automated solution quickly provides measurable success: the manual planning effort is reduced, and at the same time forecasts can be created that are up to 70 percent more accurate. This makes it possible to reduce deviations from optimal stock levels by about 20 per cent. This improves the financial performance by about five percent more turnover per year.
Develop, plan and implement product vision: The art of accurate forecasting
CHALLENGE
To be able to deliver immediately when customer needs change, to fill the warehouses in such a way that there are always enough top sellers but as few slow sellers as possible in stock: A challenge for every B2C retailer. All the more so when, in addition to the distribution of articles from other manufacturers, one’s own product development also has to be taken into account. A retail company therefore wants to use automated demand forecasting to better predict demand. DMA is commissioned to develop a product vision and to implement a suitable data analytics solution on this basis.
APPROACH
DMA brings together a total of 25 teams from over ten departments to clarify the requirements in design thinking workshops: Which processes in the company need to be taken into account, what does the appropriate target operating model for the new solution look like? From category management to purchasing, product design, marketing, sales and logistics, all key partners are involved to develop a product vision that meets all needs. On this basis, DMA defines the technical criteria and selects software, providers and suitable algorithms. The result is a demand forecasting solution that enables true integrated planning.
BENEFITS
Initially implemented as a pilot for a single product group and the home market, the automated solution quickly provides measurable success: the manual planning effort is reduced, and at the same time forecasts can be created that are up to 70 percent more accurate. This makes it possible to reduce deviations from optimal stock levels by about 20 per cent. This improves the financial performance by about five percent more turnover per year.
Retail
Develop, plan and implement product vision: The art of accurate forecasting
CHALLENGE
To be able to deliver immediately when customer needs change, to fill the warehouses in such a way that there are always enough top sellers but as few slow sellers as possible in stock: A challenge for every B2C retailer. All the more so when, in addition to the distribution of articles from other manufacturers, one’s own product development also has to be taken into account. A retail company therefore wants to use automated demand forecasting to better predict demand. DMA is commissioned to develop a product vision and to implement a suitable data analytics solution on this basis.
APPROACH
DMA brings together a total of 25 teams from over ten departments to clarify the requirements in design thinking workshops: Which processes in the company need to be taken into account, what does the appropriate target operating model for the new solution look like? From category management to purchasing, product design, marketing, sales and logistics, all key partners are involved to develop a product vision that meets all needs. On this basis, DMA defines the technical criteria and selects software, providers and suitable algorithms. The result is a demand forecasting solution that enables true integrated planning.
BENEFIT
Initially implemented as a pilot for a single product group and the home market, the automated solution quickly provides measurable success: the manual planning effort is reduced, and at the same time forecasts can be created that are up to 70 percent more accurate. This makes it possible to reduce deviations from optimal stock levels by about 20 per cent. This improves the financial performance by about five percent more turnover per year.