Case Study: Global Packaged Foods Company improves scenario planning with Prevedere

Data-Informed Forecast for Scenario Planning

Global Packaged Foods Company faced the challenge that its historical demand models were no longer valid due to the economic volatility of the pandemic. Their Market Insights team needed to identify new geographic leading indicators for product categories and create multiple forecast scenarios for 2021 planning, but lacked the capacity and agile tools to do so without tremendous risk to resource allocation and working capital. They partnered with the vendor Prevedere and its AI/ML solution to address this.

Prevedere's solution involved using its global data and AI to quickly identify key leading indicators. They built and tested three econometric scenarios (baseline, optimistic, and pessimistic) for 21 product categories. This provided the insights team with continually updating forecasts, resulting in a 98.5% forecast accuracy from back-tested models, a reduction of millions in global product category excess inventory, and a 70% shorter time to build economic scenarios, which are now used across the company for planning.