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Sales Forecasting: Convergytics forecasting solution improved planning and reduced stock outs and lost sales scenarios

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Business Context

A leading home improvement retailer based in Asia needed forecasting and reconciliation models that will accurately predict daily and intra-week sales for better planning. They also wanted to understand the drivers of sales and the contributions of various factors.

Our Solution
  • Convergytics team collaborated with client’s sales team to understand the operations and current forecasting capabilities
  • Build a forecast model for daily sales volume, reconcile the daily forecasts to weekly sales and analyze the drivers of sales
  • Worked with client’s IT team to maintain the model internally


    • Implementation
    • The model was implemented at store DC level
    • Improved inventory planning
    • Reduced stock outs
    • Better long-term forecast and planning capability


    Impact
    • 4% Reduction in loss of sales due to stock out
    • Reduced inventory holding cost by 7%


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