Value Chain Model and Simulation
Reducing sales volatility to drive supply chain efficiencies
Challenge
Global CPG wanted to assess the impact of reducing short-term sales peaks down the entire value chain
If results were meaningful, wanted to dive into drivers of peaks in demand and assess realistic ways of reducing them
Developed an end-to-end value chain model that looked at sales, distribution, warehousing and production
Assessed root causes for volatility in demand/sales
Performed scenario modelling to determine the impact of peaks in demand on the end-to-end value chain
Solution
Value
Identified over £10m of cost savings in commercial and supply chain efficiencies
With a better understanding of causes of peaks in demand, and the ability to scenario model, the client was able to create an internal sales efficiency and excellence programme to gradually change ways of working and approach
Roles
Data Scientist
Tools
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Sector
Retail & Consumer