Promotion Volume Forecasting
WHY (Problem)
Promotions are often the most challenging aspect of volume forecasting, as they create unpredictable demand spikes and inconsistent distribution across time periods and locations. At the same time, promotions are a critical growth driver for many industries, accounting for 20-70% of total sales. Consequently, a significant portion of the commercial and demand planning teams' efforts is dedicated to accurately forecasting promotional shipments and consumption. However, despite substantial investment in time and resources, achieving high forecasting accuracy without the right digital tools often yields mixed results.
WHAT (Value)
Productivity
commercial and demand planners’ time is saved, previously spent on promo shipment and consumption forecasting activities
Time to Value
Complexity:
Decision quality
15-45% more accurate promo shipments and consumption forecast (in terms of mean average percentage error, aka MAPE) resulting in service increase and inventory reduction
HOW (Solution)
We have deep implementation expertise and pre-built, advanced machine learning algorithms for promotion forecasting, delivering exceptional accuracy at the most granular levels ship-from/week/SKU for shipments and store/week/SKU for consumption. Our team understands how to prepare customer data and identify the key attributes and features that matter for specific use cases. Additionally, our solution encompasses a full CI/CD and DevOps framework, enabling rapid, effective change management and ensuring stable, efficient operations.
