“Dribia has served as a lever to improve our S&OP methodology and the incorporation of predictive algorithms.”
FEATURES
Monthly demand forecast for >7000 products fully automated with user interface and control dashboard.
IMPACT
15% increase in average accuracy, predictions at the lowest possible level of granularity with confidence margins and structuring with traceability of the entire modification process.
ACHIEVEMENTS
Reduction of obsolescence and stocking costs in low turnover products and mitigation of breaks in high turnover products.
BUSINESS PROBLEM
Managing Sales and Operations (S&OP) in B2B2C companies presents challenges due to the inherent intermittency and heterogeneity of demand (some products sell a lot and others sell little). Sales forecasting is crucial for anticipating demand from business customers and end consumers, and for very large catalogs it cannot be done manually efficiently, leading to predictions of limited accuracy. The accuracy of the forecast prevents waste and excess inventory, optimizing the supply chain and customer satisfaction. The implementation of advanced analytics and artificial intelligence techniques is critical to obtaining accurate forecasts, although the approach must necessarily be collaborative between sales, marketing, operations and logistics teams. A well-founded forecast allows production and distribution to be planned effectively. This provides competitive advantages and fosters sustainable growth in a dynamic and competitive environment.
DRIBIA’S SOLUTION
Dribia has worked with Simon’s Operations department to create GOIA, a tailor-made demand forecasting tool. Goia combines prediction with artificial intelligence with “analyst in the loop” type tools to involve human experience and judgment. This allows an improvement in the quality and confidence of the results, as well as adaptability to changing or unexpected phenomena. Analysts can detect biases and correct them, improving impartiality, while AI can generate predictions in minutes for all references, not forgetting the least important ones (which often generate the main overstock).
Goia facilitates the making of informed and more precise decisions in a complex environment, as well as the traceability of the process and the dialogue between departments that occur in this type of process.
