Improved New Product forecasts with launch curves, POS tracking, and execution meeting.
Company
US alternate channels division of multinational Fortune 500 food company
Reduced Forecast Error 14%
Reduced Obsolescence 90%
Situation
- Company was experiencing significant obsolescence from new products.
Solutions
- Analyzed history to develop “launch curves” of weekly demand profile of successful launches in different channels.
- Implemented weekly tracking of new item shipments against launch curves.
- Tracked point of sale (POS) demand from Neilson for new items in Convenience against forecast assumptions.
- Led weekly cross functional execution meeting to review shipments against launch curve and POS demand where available.
- Adjusted forecasts and production plans weekly based on cross functional meeting output, without violating company frozen schedule requirements.
Benefits
- Reduced forecast error for new products by 14%
- Slashed obsolescence for new products by 90%