About Customer

  • E-commerce business selling a wide variety of products including electronic gadgets
  • Operating for 7 years having 53,000 Consumers & 100+ Vendors
  • Having 10,000+ SKUs of various 400+ Brands

Business Drivers

  • Ability to Forecast by Periodicity (Weekly, Fortnightly, Monthly, Quarterly), Span of Products, Measures to Forecast (Sales Quantity, Revenue, profitability)
  • Forecast Rollups by Product, Category, Brand, Department, Region (metropolitan area)

Approach and Deliverables

  • Developed Forecasting framework using ‘Bottom-up’ forecast (Prediction) and ‘Top-down’ forecast (Time series forecasting)
  • Performed RFM and ABC Analysis to filter out slow-moving products
  • Segmented products as “New”, “Growth”, “Maturity”, “Discontinuation” and “Decline” based on the salesbehaviour
  • Tried various Smoothing and regression methods and evaluated the performance using Jung-box test

Outcomes/Benefits

  • Identified candidates for various forecasting techniques – Over 60% of the products and 80% revenue generators
  • Streamlined Procurement (# of Orders placed, rationalization of vendors and products)
  • Better Pricing (Margin Analysis, Profitability)