Driving 10 % Points Improvement in Forecast Accuracy for Retail Manufacturer
The Challenge: A Fragmented Forecasting Process with Limited Insights
The Demand Planner faced a series of hurdles that hindered accurate and efficient forecasting:
- Seasonal Product Challenges: Highly seasonal product demand and a lack of historical data made forecasting particularly challenging.
- Non-Standardized Processes: Each division operated independently with inconsistent planning practices.
- Manual Forecasting Inefficiencies: Heavy reliance on Excel spreadsheets and sales-driven forecasts resulted in inaccuracies and inefficiencies.
- Limited Performance Visibility: Without clear metrics or tools, measuring forecast accuracy and performing root cause analyses was nearly impossible.
- Complex Product Portfolios: Constant product updates and version changes added layers of complexity to the forecasting process.
Solution
The Owl’s Demand Planning module went beyond simple forecasting by SKU and categorizing all products in the manufacturer’s portfolio. The products were segmented into ABC categories based on their revenue impact, allowing the team to easily identify which products were driving higher revenue and which ones required more attention.
This segmentation empowered the Demand Planner to focus resources and efforts on high-impact products, improving forecast accuracy for critical SKUs while streamlining the overall process for less significant items. By having a clearer understanding of product performance, the team could adjust their strategies more effectively, ensuring that forecast errors were minimized, and high-demand products were always available to meet market needs.
Through ABC segmentation, The Owl helped the team not only improve their forecasting process but also provided better operational focus, aligning the planning efforts with revenue-driving products and ensuring optimal inventory levels across the board.
Why They Chose Owl
The Owl’s Demand Planning module provided the comprehensive solutions needed to address these challenges and elevate forecasting practices:
- Centralized Visibility: Consolidated all demand planning data, offering real-time insights into forecast performance.
- Standardized Processes: Established a unified, repeatable forecasting methodology across all divisions.
- Enhanced Root Cause Analysis: Monthly performance reviews enabled the team to identify issues, uncover root causes, and drive continuous improvement.
- Seasonal Adaptability: Provided historical comparisons and rolling 12-month analyses, creating reliable baselines for highly seasonal products.
Outcome: Significant Division-Wide and Category-Specific Improvements
By implementing The Owl’s Demand Planning module, the outdoor retail manufacturer achieved the following results:
- 10 Percentage Point Improvement for the Division: showcasing measurable gains.
- Improved Planning Maturity: Standardized processes created a consistent and scalable forecasting approach across divisions.
- Data-Driven Decision-Making: Enabled identification of continuous improvement opportunities through root cause analysis.
- Reduced Forecast Bias: Enhanced accuracy led to better inventory alignment, reduced waste, and improved operational efficiency.
“The Owl gave us the visibility we never had before and helped us standardize our approach to planning. For the first time, we had clear performance insights, which allowed us to identify and solve the root causes of forecast inaccuracy. It’s been invaluable for our team.”
—Demand Planner
Through the adoption of The Owl’s Demand Planning module, the outdoor retail manufacturer successfully transformed its forecasting processes and improved accuracy across all categories.
The structured, data-driven platform delivered 10 percentage points of improvement division-wide driving measurable operational benefits.
If you’re looking to achieve similar results, contact us today to schedule a personalized demo or learn more about how The Owl can help optimize your forecasting and operations.