Originally Published on: QuantzigHow we helped a leading spirits manufacturer reduce production costs through enhanced forecasting models
Client Success Chronicle: Embarking on a transformative journey, Quantzig collaborated with a preeminent US-based spirits manufacturer, commanding a revenue exceeding $14 billion. The intricate global supply chain dynamics presented challenges, as inaccurate forecasts triggered stock-outs and substantial financial losses, eclipsing $200 million.
Solutions Forged: Quantzig strategically intervened, conducting an exhaustive analysis of SKU demand signals and implementing an advanced SKU classification framework. Harnessing cutting-edge machine learning algorithms, they meticulously tailored multiple forecasting models for each SKU. The integration of automation, leveraging Azure Synapse, Power Automate, Power Apps, and Python, heralded a revolution, compressing the manual 30-day forecasting into an efficient 4-day automated workflow.
Remarkable Impact: The outcomes were truly remarkable, unveiling a 10-15% point surge in forecast accuracy, an impressive 80% reduction in forecasting process time, and notable enhancements in production planning.
Industry Insight: The US spirits manufacturing sector, a pivotal economic contributor, places extensive reliance on precise forecasting for prosperity. Accurate predictions empower manufacturers to optimize inventory, ensuring profitability in this dynamic sector.
Client's Profile: Our client, a distinguished spirits manufacturer grappling with a 20% loss due to inaccurate forecasting, sought an innovative model for a prosperous future. Their intricate 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 Implemented: Quantzig orchestrated a comprehensive four-step approach, encompassing a Demand Forecasting Module, Demand Adjustment Module, Automation Module, and Business Intelligence Command Centre. This involved enriching data, incorporating advanced algorithms, creating demand adjustment modules, and establishing a robust business intelligence center for profound analysis.
Client's Transformation: Quantzig leveraged advanced analytics and machine learning, dissecting SKU demand signals to craft a robust SKU classification framework. The infusion of cutting-edge algorithms and automation streamlined operations, empowering the client to optimize inventory, mitigate financial losses, and excel in the dynamic spirits industry.
