Abstract
Most of the fast-moving consumer goods companies (FMCG) have two main targets in order to become successful on the market. First, it is profit maximization and the second one is cost optimization or minimization. If the company can hold those two key performance indicator (KPIs) in balance, it has all the odds to be competitive and successful in the field of operation. Supply Chain (SC) team and in particular Demand planning (DP) plays a crucial role in achieving those targets mentioned above with help of recommendation modelling systems. Demand planning team are those who can translate business needs into meaningful and measurable numbers for Supply Chain keeping healthy inventory level and delivering the goods that needed with the best freshness and availability possible. Further, we will describe and analyze how to achieve better results vs. current solutions on specific company called PepsiCo via modelling and analyzing Demand Planning in FMCG sector overall.
Highlights
Majority of international companies in fast-moving consumer goods companies (FMCG) sector have complexities related to Supply Chain operations starting from Demand Planning and ending with Customer orders fulfillment
Demand planning (DP) team works with Forecast Accuracy (FA) and bias, in other words DP planner predicts which product will be sold in particular city, channel with lag time of up to 16 weeks with best possible forecast accuracy (FA)
Analyze the current data on hand and create a model that will take as an input all the parameters above and give an output and we call it time-series Demand Planning model/ recommendation system
Summary
Majority of international companies in FMCG sector have complexities related to Supply Chain operations starting from Demand Planning and ending with Customer orders fulfillment.
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