A Major Food Retailer
Over 200 company owned retail stores
200 Franchise Across USA
Having ecommerce business
PROBLEM
- This customer has almost 400 store locations along with E-Commerce channels and carries more than 1000 products.
- Perishable food products require day level planning. Breaking down a top-down monthly budget to a daily level and updating the plan for a large number of Product-Store combinations, was untenable in Excel.
SOLUTION
- The EPM solution used statistical modelling for top-down budget allocation, that offered higher accuracy to detailed plan. Modelling of Holiday Calendars helped forecasting peak period abnormal demand volumes.
- Solution also enabled recommendations for inventory allocations based on demand and supply information, reducing safety stock levels across the supply network without affecting the customer service
RESULTS
- The solution resulted in reduction of planning cycle from weeks to days with a much higher accuracy.
- The capability to pull products to locations based on actual demand, reduced bull whip effect across the supply network. This reduced inventory levels and cost of carrying perishable inventory.
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