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  • Sarvesh Kumar and Sree Vidya Pillai

Building Reliable Scenarios for Financial Planning in the uncertain market

Demand forecasting in turbulent times

Covid -19 has posed a significant variation in the accuracy of demand forecasting and contributes to elevated uncertainty through the present day. Accurate demand forecasting is imperative because it dictates budgeting, business planning and revenue goal setting. Covid-19 has impacted several macroeconomic factors such as gross domestic product (GDP), government debt level, employment rate, and inflation/consumer price index (CPI) and how they change in the short-term and long-term. All these have led to inaccuracies in demand forecasting which will directly impact the company's financial goals. We know that the volatility of the demand increases with changes in the macroeconomic indicators. All this necessitates a deeper complex analytical model for demand forecasting. Traditional demand forecasting tools and methodologies no longer help.

The Category Forecasting solution of CatmanAi was implemented by one of the large CPG Companies that encountered demand forecasting errors during the pandemic. Inflation was the key macroeconomic indicator that distorted purchasing power leading to inaccuracy in demand forecasting. CatmanAi not only tested price elasticity, it also studied the significant impact of consumer behaviour, personal disposable income, gross domestic product, unemployment rate, covid cases and effects of transportation and logistics on the Supply Chain.

It was identified that Inflation, Covid-19, and supply chain disruption were the significant factors that contributed to errors in demand forecasting, leading to inaccurate inventory planning.

CatmanAi helped our client reduce the forecasting errors to less than 5%. The solution was later rolled out to 58 categories across 11 countries.

Learn More:

Gain Confidence:

· Discuss your planning challenges

· See the solution in action, Accuracy, Scenarios, Drivers Simulation

· Proof of technology, Proof of Value, Trial

Realise ROI:

· Onboard in less than 2 weeks

· Low unit cost

· Scale across categories/brands and countries.

Reach out to us!

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