Case Study: Danone improves forecast accuracy and promotion planning with ToolsGroup

Danone - Customer Case Study

Danone, a leading global food company, faced a significant challenge with the inaccuracy of its demand forecasts, which were heavily impacted by trade promotions and media events. These activities accounted for nearly 70% of forecast error and involved poor coordination between its sales, demand forecasting, account planning, and finance departments. To create a more reliable forecasting platform, Danone partnered with vendor Brookes Supply Chain Solutions and implemented their ToolsGroup system, which uses machine learning technology.

The solution from Brookes provided a detailed modeling capability for predicting the sales "lift" from promotions and improved cross-departmental coordination. The results were dramatic, including a 20% reduction in forecast error, a 30% reduction in lost sales, and a 30% reduction in product obsolescence. Danone also saw net ROI on promotions improve by 36% in the first year and service levels exceed 98.7% for 37 consecutive months, all while reducing its demand planners' workload by half.

Danone