Enhancing Forecasting with Business Modelling

In one of the projects, issues with inaccurate sales forecasts, resulting in inventory shortages and excesses were identified that were costing the company INR 8 lacs monthly. To address this, the project team thought about using business modelling approaches to analyze the historical sales data using multiple regression techniques, identifying key factors such as seasonality, marketing expenditures, and economic indicators. The team developed a robust predictive model that enhanced forecasting accuracy by 25%. This improvement enabled more precise inventory management, reducing stockouts and overstock situations by 30%. Consequently, the project saved the company approximately INR 12 lacs annually and provided better predictions and forecasting for strategic decision-making.