FMCG Demand Forecasting
€2.4M saved annually
Client Context
An FMCG company managing 4,000+ SKUs across 12 warehouses supplying major European retailers. Demand planning relies on spreadsheet-based forecasts updated monthly.
The Challenge
Stockouts cost the company key shelf positions with retailers. Simultaneously, excess inventory ties up capital in slow-moving SKUs. The planning team can't account for promotional impacts, weather effects, or economic indicators at SKU level.
Our Approach
We build a demand forecasting system using Temporal Fusion Transformers that incorporates sales history, promotional calendars, weather data, and macroeconomic indicators. The system generates daily forecasts at SKU-warehouse level with automatic alerts when demand deviates from predictions.
Timeline: 16 weeks
The Results
- Forecast accuracy projected to improve by 23%
- Stockouts expected to fall by 35%
- Up to €2.4M in annual holding cost reductions
- Planning team manages by exception rather than manually forecasting
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