Increase Demand Forecast Accuracy
The current Demand Forecast Accuracy averages 70%, with fluctuations between 66% and
82%, resulting in frequent inventory imbalances, stockouts, and disruptions in production and
logistics planning. These inaccuracies are causing the organization to incur nearly ₹12 million
per quarter in excess inventory and lost sales. The variability in forecasting reduces customer
service levels, drives up carrying costs, and forces operations to rely on reactive planning
rather than a stable, data-driven approach. Improving forecast accuracy to at least 90% will
significantly reduce inventory costs by 15–20%, enhance product availability, and strengthen
coordination between Sales, Operations, and Supply Chain. Overall, the project is expected
to deliver annual savings of ₹30–40 million through improved efficiency and reduced
operational waste.