Case Study: a major cosmetics company in Latin America achieves 70% better demand forecasting accuracy with Sigmoid

a major cosmetics company in Latin America boosts demand forecasting accuracy by 2.7x with Sigmoid

The customer, a major cosmetics company in Latin America, faced challenges in demand forecasting for its direct sales model. They partnered with vendor Sigmoid to create a new solution aimed at increasing sales and reducing stock-outs and inventory costs.

Sigmoid developed an end-to-end demand forecasting solution from scratch, utilizing a stacked model of XG Boost and random forest. This approach automated campaign planning and achieved a 70% improvement in forecast accuracy. The solution resulted in over $30 million in savings on inventory handling costs for the client.