UCBOS
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UCBOS
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CASE STUDY

Transformed CPG Supply Chain with Integrated Demand Planning

Industry

Retail & Manufacturing (CPG)

Ecosystem

Oracle, Integrated Advanced Planning System 

Metrics

    80% Improved Forecast Accuracy, 70% Optimized Inventory, 95% Enhanced Service 

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    Business Challenge 

    A mid-sized Consumer Packaged Goods (CPG) manufacturer, operated with a highly reactive and inefficient supply chain driven by poor demand visibility. The business involved significant Inventory Imbalances, Inaccurate Forecasting, Siloed Planning, Reactive Operations, and ineffective Inventory Management. 

    The organization needed to overhaul its planning capabilities to improve forecast reliability, optimize inventory investment, meet rising retailer service expectations, and increase responsiveness. 

    Solution Implemented 

    UCBOS implemented a comprehensive demand planning and forecasting solution centered around an integrated Advanced Planning System (APS) linked to the company’s ERP. The solution provided: 

     

    • Statistical Forecasting Engine: Leveraged multiple statistical models (time series, causal analysis) to generate more accurate baseline demand forecasts automatically. 
    • Demand Collaboration Tools: Provided a structured platform for Sales and Marketing to enrich the baseline forecast with market intelligence and promotional plans. 
    • Inventory Optimization Module: Dynamically calculated statistical safety stock and reorder points based on desired service levels, measured forecast error, and actual lead time variability. 
    • Receipt Lead Time Forecasting: Implemented tracking and forecasting of actual supplier lead-times to improve replenishment planning accuracy. 
    • Formal S&OP Process Implementation: Established a structured monthly Sales & Operations Planning cycle, mandating cross-functional collaboration (Sales, Marketing, Operations, Finance, Supply Chain) to arrive at a single, consensus demand plan aligned with supply capabilities. 
    • Training and Defined Roles: Invested in training personnel on new tools and processes, establishing clear accountability and KPIs within the S&OP framework. 

    Business Outcome 

    By implementing the integrated APS and formal S&OP process, UCBOS transformed the business’ demand planning capabilities from a weakness into a strategic advantage, delivering significant improvements aligned with key metrics: 

     

    • Improved Forecast Accuracy: Aggregate forecast accuracy (MAPE) increased substantially from ~55% to the 75-80% range, reducing forecast bias.

    • Optimized Inventory: Achieved a 45% reduction in overall inventory value while simultaneously decreasing stockout incidents by over 75%, leading to lower holding costs, reduced obsolescence, and improved working capital.

    • Enhanced Agility: The S&OP process and improved forecast visibility enabled more stable production, reduced reliance on costly expediting (cut by nearly 50%), and allowed for quicker, more informed responses to market changes and opportunities.

    • Improved Service Levels: On-Time, In-Full (OTIF) delivery rates to key retailers improved from 75% to consistently above 95%, strengthening partnerships.

    • Enhanced Collaboration: Fostered better communication and trust between departments and with suppliers due to more reliable demand signals. 

    Case Studies 

    Explore real-world examples of how organizations have leveraged UCBOS to transform their operations and drive success. 

    Case Studies

    Recognition

    Discover how UCBOS has been recognized in the industry for its innovative solutions and commitment to excellence.