Sales/Demand Forecasting

(customer is hidden for privacy reasons)

A granular, self-adapting demand forecast helped a German telecommunications company make better steering decisions

Baseline

The sales forecast was done manually and was based mostly on historic sales

A profound forecast was difficult to create manually due to many influence factors – e.g. changing demographics in each region or grid expansion plans depending on the weather

Approach

A data quality exercise was conducted to reconcile sales data with PnL values

Exploration of the impact of various external factors on sales

Building a model with the relevant external as well as internal factors to predict sales over the next 12-24 months

Forecast done on a very granular level; by municipality, product, customer group etc. and reconciliation to totals

Support with the integration of the model into the IT system together with the client

Benefit

Always up-to-date: runs periodically in line with business planning processes to ensure latest information is being used for decisions

Profound forecast used for planning demand, focusing sales activities, and making strategic decisions