An international company that holds a leadership position in FMCG categories recovers supply availability at the point of sale and increases collaboration with its commercial partners.
This company has been a client of Real Metrics since 2017, evolving in different applications since then. One of the most successful projects has been the implementation of advanced analytics for retailer collaboration in an integrated system with Data Acquisition, Real Connect Mobile App and Data Science applications for sales forecasting. In this implementation, usage dashboards were generated per retailer, where the sales growth attributable to the advanced analytics models was + 20% in a CAGR of 5 years.
Business challenge
Making the right product available to the shopper at the right place, at the right time and at the right price is the goal of every company, manufacturer or distributor. One point is certain: if the product is not in the store when the shopper wants to buy it, we will not sell it!
The customer wanted to implement a solution that would process millions of pieces of data and provide recommendations based on their needs to address problems such as excess inventory, poor catalog management, product shortages at key times, lost sales and dissatisfied customers.
Customer contact
Developing such a model involved two important factors:
- The forecasting algorithm analyzes historical and current data to predict future results. By using this algorithm effectively, you can anticipate market trends and make strategic decisions based on the forecasts (Evaluate the impact of rapid changes in consumer behavior and the economic landscape on sales).
- Artificial intelligence and Machine Learning are technologies that enable systems to learn and improve automatically from experience and data. These technologies allowed us to optimize business processes and automate repetitive tasks, resulting in a significant increase in efficiency and productivity.
Impact
These technologies provided a competitive advantage by harnessing the power of data and automation in the business; they helped make more informed and efficient decisions among the following outstanding results:
- Increase in sales through reduction of OSA, from 11% (2020) to 6.8% (2023 YTD)
- Significant reduction of excess inventory
- Improved product availability at the ideal time
- Establishment of strategic alliances with clients
- Improved decision making
- Increased customer satisfaction
Sales performance by year
In addition to the sales increase results, the company has achieved a sales recovery through the improvement of supply at the point of sale. In the course of 3 years, it has been able to recover 4 million dollars in lost sales due to supply, resulting in a +5 percentage point improvement in supply.
*OSA is an acronym that stands for "On Shelf Availability".