A large UK FMCG manufacturer wanted to accurately predict stock levels of seasonal items to ensure it increased its value share
Using IRI Strategic Forecasting the manufacturer gained key insights into expected weekly sales based on the weather to achieve 12.4% sales growth.
THE CHALLENGE
Loss of potential sales to the manufacturer due to out-of-stock items on the shelves caused by inaccurate predictions of consumer purchasing when weather conditions changed.
IRI Strategic Forecasting models were used to forecast sales changes based on weather using historic sunshine and temperature data, and how it affected sales of particular products in specific UK regions.
The solution allowed the manufacturer to:
- Upload the weather forecast weekly and project the sales uplift in each UK region.
- Accurately understand the impact of significant external factors for long-term planning.
- Enhance sales in real time for immediate growth.
Instead of feeling the frustration of not being able to meet the demand of shoppers on products of piqued seasonal interest, the manufacturer is now winning in its ability to use data to its advantage to stay one step ahead.
THE RESULT
The accuracy of the forecasting led to increased listings and reduced out-of-stock items, resulting in an increase of 12.4% in value share versus the previous year for a specific retailer.
The manufacturer was able to:
Influence the supply chain by using the data analysis to advise on exact product quantities to order each week.
Which led to enhanced collaboration between the manufacturer and the retailer with both parties maximising revenue.
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