Win the E-Commerce Game
Not long ago, a major CPG company was struggling with a raft of problems, from low case fill rates and punishingly short 48-hour fulfillment windows to out-of-stock penalties and loss of market share.
TradeEdge:
The primary source of these woes? Unprecedented growth of e-commerce and changes in the way people shop—sparked largely by the COVID-19 pandemic. But the CPG company has since turned things around, improving case-fill rates by 6% while keeping inventory low, with significant improvements to the customer experience and the bottom line.
This was no lucky win. An autonomous supply chain planning and execution platform, coupled with probabilistic forecasting, propelled the CPG company to victory in the e-commerce game.
With Autonomous Supply Chain
Planning and Execution
Autonomous supply chain planning and execution platform component of the Infosys solution, powered by the TradeEdge platform, used to:
SUCCESS SNAPSHOT
Low case-fill rates in
e-commerce channel
Leading CPG Client
CHALLENGE
SOLUTION
Harmonize off-take data with CPG planning hierarchy
Case Study:
6% improvement in case fill rate with 4.5% lower inventory
RESULTS
Apply probabilistic forecasting method to develop more accurate sell-in forecast at distribution center level, helping to optimize inventory and improve case fill rate
Scale up methodology to all SKUs
Reduction in out-of-stock penalties, equating to up to 1.4% of category revenue
Marked improvement in customer experience and bottom line
Sell-in requests from
e-commerce channel proved mostly erratic and intermittent, leading to low fill rates and “out-of-stock” penalties
Weekly “sellout forecasts” provided on national level did not always align with sell-in requests at SKU/distribution center level—48-hour fulfillment window exacerbated challenge
Autonomous supply chain planning and execution platform component of the Infosys solution, powered by the TradeEdge platform, used to:
Harmonize off-take data with CPG planning hierarchy
Apply probabilistic forecasting method to develop more accurate sell-in forecast at distribution center level, helping to optimize inventory and improve case fill rate
Scale up methodology to all SKUs
6% improvement in case fill rate with 4.5% lower inventory
Reduction in out-of-stock penalties, equating to up to 1.4% of category revenue
Marked improvement in customer experience and bottom line
Low case-fill rates in
e-commerce channel
Sell-in requests from
e-commerce channel proved mostly erratic and intermittent, leading to low fill rates and “out-of-stock” penalties
Weekly “sellout forecasts” provided on national level did not always align with sell-in requests at SKU/distribution center level—48-hour fulfillment window exacerbated challenge
CHALLENGE
SOLUTION
RESULTS
SUCCESS SNAPSHOT
Leading CPG Client
Case Study: