---
# Category-level demand forecasting improves supply chain planning
**URL:** https://www.sigmoid.com/case-studies/category-level-demand-forecasting-improves-supply-chain-planning/
Date: 2024-04-18
Author: Sigmoid
Post Type: page
Summary: Category-level demand forecasting improves supply chain planning An automated, data-driven forecasting solution generates real-time category level insights at weekly frequencies to optimize...Read More...
Featured Image: https://www.sigmoid.com/wp-content/uploads/2024/04/Category-level-demand-forecasting-Thumbnail.jpg
---
# Category-level demand forecasting improves supply chain planning
An automated, data-driven forecasting solution generates real-time category level insights at weekly frequencies to optimize inventory
[fluentform id="109"]
### Business Scenario
The client is a leading American consumer health company. The demand planning team was responsible for setting the organization’s sales, margin and inventory forecasts. Their planners were working in isolation using manual spreadsheet based approaches that were time-consuming, prone to error and subjectivity. The rudimentary methods resulted in inaccurate estimates across the cold, cough and pain categories. The planning team had very little control over the forecast parameters, time horizon for forecasting, cost and explainability.
### Sigmoid Solution
We created a customized [demand forecasting solution using advanced ML algorithms](/demand-planning-and-forecasting-a-comprehensive-guide-by-sigmoid/) to estimate future demand for the OTC product categories. Automated data engineering pipelines were operationalized to seamlessly manage all stages of data processing, modeling data preparation, forecast model design, and model selection. Large volumes of data from multiple internal and external data sources such as IQVIA offtake data, 3rd party tool data for pricing, competitive activity, marketing data, POS data, out of stocks etc. were ingested and processed for desired level of forecast granularity– weekly for each category.
[Download case study](#ip-cs-Form)
### Business Impact
The automated category demand forecasting solution streamlined the demand planning process, created a unified approach for all planners and significantly improved forecasting accuracy.
Reduced MAPEs
up to 80% for the OTC drugs
50% time savings
for planners leading to higher efficiency
Automated solution
to forecast the category demand for global markets
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