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A new approach to Forecast Demand Planning

Last June Adros Spa set up a prototype of its forecasting and planning system for the "FDP" demand in Coop Vinitalia. After a couple of months of tuning in September, the system, a true departmental, started operating in a final version.

The system makes use of conventional statistical methods used in unprecedented ways compared to the existing literature. The approach is more modern and dynamic and therefore responds better to the needs of synchronism with respect to the times in which everyday reality takes place. Predictive techniques also define new frontiers in business flows and processes. The organizational impact is significant but the improvements have been evident since November.

Objectives achieved

To date, therefore, within a few months, the significant improvement of all the main management indices is clearly evident. The greatest benefits were found on the inventory turnover index which implies a marked reduction in surplus stocks and a significantly improved cash flow. The level of service has improved and the number of stock breaks has been markedly reduced. The economic benefits derived from these optimisations have been used to widen the range of products and therefore to make VInitalia even more competitive from the point of view of vastness of the range.

It is evident that the new frontier of the business lies in the automation of processes with high added value. Ever more intelligent and versatile machines that respond to advanced rules systems to be used in tasks pertaining to the company's top management.

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