TCS Smart Forecasting: better decisions through collaboration

Overview

The volatile nature of the market can be challenging for basic demand forecasting models of consumer packaged goods companies to handle.

Accuracy of predictions can be improved when all participating channel partners provide market insights. 

Forecasting solutions expand the scope of using more error metrics for selecting best models for predictions. To this end, TCS' Smart Forecasting solution works as an enterprise supply chain data platform that can be easily extended based on future business scenarios and market fluctuations. This cloud-based offering can be integrated with existing systems to automate complex data collection processes and make predictive analysis effortless.

Advanced forecasting with cutting-edge technology

Demand forecasting is the nuts and bolts of supply chain management of consumer packaged goods companies.

Without it, businesses cannot hope to adapt to the uncertain macro environment of today. However, as technologies evolve, forecasting complexities have increased and with it the need for ensuring the best insights at speed for better decision-making.

Forecasting considerations have to be weighed against growth plans as well as accuracy rates. In this scenario, large enterprise ecosystems will do well with advanced forecasting platforms that use cutting-edge technology to predict demands accurately and fuel long-term business plans.

TCS’ Smart Forecasting solution enables better accuracy and decision-making through a collaborative digital platform. It collects and processes data from all stakeholders and systems to generate demand forecasts that help businesses in their production planning, inventory planning, and distribution planning activities. Designed with enterprise partner ecosystems in mind, this cloud-based offering uses machine learning-based models for rolling forecast and rule-based models for modification of forecast values at a monthly level.

Solution

TCS' Smart Forecasting platform includes the following components:

• Machine learning-based forecasting: The solution is configurable to calculate demand forecasting at a daily, weekly, or monthly frequency for channel partners. It can generate reports at an item or brand or category level for the selected frequency. The platform can generate forecasts based on the best fit error matrix and accurately predict demand across regions using a combination of machine learning and time series models. Data collection and preparation are done using historical sales data and correlation information.

• Forecast for new product, variant: The solution captures new product release and alternative stock keeping unit (SKU) correlation information to forecast for items without historical demand data, thus helping production planning.

• Market insights from partners: The solution enables channel partners of consumer packaged goods companies to capture market insights on all SKUs at any given frequency and modify forecast values to enhance demand sensing and forecast efficiency.

• Workflow approval-based modification: The solution provides for workflow-based approval for any modification for the machine generated forecast.