The key to consumer products industry success
Sales prediction, either for sell-in or sell-out, is one of today’s main challenges for most companies in the consumer products industry. As you would expect, it is a keystone to most divisions of a company. Several key business areas are indeed directly impacted by sales forecasting, namely stock management, marketing choices arbitrage or product portfolio management, among others.
However, the complexity of the distribution channel of consumer product companies and the multiplicity of drivers either on the consumers’ or on the retailers’ side makes it difficult to accurately predict sales. Moreover, existing models, which are mostly built on historical data forecasting only, are not suited to handle today’s challenges anymore. New phenomena such as Social Media or Global Shoppers effects are in fact exacerbating the lack of accuracy of existing forecasting models.
All this generates an important lack of reliability of existing prediction models resulting in considerable investments of both time and money.