Industry
Consumer Packaged Goods and Distribution
Enabling Product Innovation and Omnichannel Experience in CPG
Highlights
- Evolving technologies have not only increased the complexity of forecasting, but have also made fast and better decision-making imperative.
- TCS’ Smart Forecasting solution enables better accuracy and decision-making through a collaborative digital platform.
- The cloud-based offering works as an enterprise supply chain data platform that can be extended based on future business scenarios, and can be integrated with existing systems to automate complex data collection processes for predictive analysis.
In this article
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.
Benefits
Firms reap numerous benefits if they choose the Smart Forecasting platform:
Better accuracy: Businesses can improve their demand forecasting accuracy between 10% and 50% based on the baseline forecast accuracy with machine learning-based forecasting models.
Improved collaboration with channel partners: Offering channel partners complete visibility into supply chain helps generate improved inventory forecasts and allows for timely modifications and integration of unique insights into the market.
Enhanced adaptability: Weekly and monthly updates based on market intelligence and the predictive analytics engine helps sensing demand proactively and to adapt to changing scenarios with better decision-making.
Reduced manual efforts: Automated processes replace manual tasks with rule-based actions and easily configurable machine-learning models.
The TCS advantage
TCS has proven expertise in offering supply chain management solutions to consumer packaged goods, retail, manufacturing and distribution, and high-tech industries globally.
So, by joining hands with TCS, enterprises can leverage the following:
Modular, scalable, and configurable solutions: Based on ready-to-deploy technology components, our solution can lend itself to any logistical or planning requirement
Contextual knowledge and expertise across functional areas: We have a strong team that is experienced and knowledgeable with a solid industry background and rich contextual knowledge
Flexible solution: Our solution is designed to be accessible anywhere and on any device. It has the flexibility of integration with multiple systems and a modular architectural design
Customer-friendly delivery model: Our client-first mentality ensures that our solutions drive business outcomes beyond traditional efficiencies
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