Solution for Inventory Demand Forecasting for Constance

Stock Demand Forecast in Distribution Centers

Optimizing infrastructure investments through accurate demand estimates.

Context

In this project, we utilized predictive methods to estimate the stock demand for different products in each distribution center across Brazil, aiming to guide infrastructure investments.

Challenge

To avoid stockouts and maintain compliance with current regulations, our client needed to estimate the stock requirements for each product in its distribution centers across Brazil. The solution needed to not only ensure operational continuity but also enable better resource management.

Precise Estimates for the Future

To make assertive decisions regarding infrastructure investments, the major challenge was to obtain a more accurate projection for the next 10 years. This projection had to account for both market conditions and operational specificities, ensuring that planning aligned with future demands.

Our strategy

Our service is designed to provide a team of dedicated specialists to turn your challenges into opportunities.

1

The client already had data indicating growth and consumption decline trends for the next 10 years, but this information was organized by product group and state, not by distribution center.

2

We created statistical models that considered market information as well as daily product movement data in each distribution center.

3

These models accurately estimated stock demand for the next 10 years, enabling more effective infrastructure investment planning.

Measurable Impacts and Results

The tool, capable of processing model results from different predictors, enhanced the value of the existing market information;

By increasing predictability for more assertive decision-making, the tool improved the efficiency of infrastructure investments in distribution centers.