Case Study: a large CPG company achieves 2.5% annual sugar savings with Descartes Labs

Delivering ROI with an improved sugar forecasting model

Descartes Labs worked with a large CPG company to address the challenge of reducing its significant sugar procurement costs. The client sought a more systematic and reliable method for purchasing sugar to achieve long-term savings, moving away from a less precise heuristic strategy.

By leveraging geospatial data and remote sensing, Descartes Labs created a robust forecasting model for ICE Sugar #11 futures. This model incorporated data on weather, supply, demand, and energy to predict price movements and generate a strong purchasing signal. The solution delivered by Descartes Labs resulted in reliable average annual savings of 2.5% on the client's sugar spend.