Demand Forecasting for a Medical Devices Company
Demand forecasting using near real-time data is crucial to any enterprise’s supply chain management system. An efficient supply chain strategy will make room for fluctuating demand and this can be done by enabling a highly robust data management framework.
One of the largest medical technology companies in the world was looking to revamp its existing SCM operations. At the macro-level, the client wanted:
• Improve the accuracy of its demand forecasting model to increase supply chain efficiency
• Create a framework that can forecast at acceptable high-levels of accuracy which was currently not possible due to demand-stream volatility.
THE MU SIGMA APPROACH:
Mu Sigma created an advanced analytical framework aimed at improving the client’s demand forecasting. We followed a comprehensive methodology to enhance existing forecast accuracy to ensure short term accuracy and long-term volume alignment.
Mu Sigma helped improve accuracy of forecasting from previous 53% to 70% with nearly 95% accuracy across stable segments. The solution also stabilized overall process efficiency.
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