Less Bias, More Focus on Forecasts
By capturing multi-source information and making it available in a single location, it was made easier for teams to access high-quality forecasts quickly and easily. In fact, shifting to an Integrated Decision Planning Framework (IDPF) powered by the NAVIK AI Platform allowed our client to:
Drastically improve forecast quality (41% in six months).
Reduce forecast bias to 2%.
Identify leaking buckets and focus areas.
Revise their existing strategies to optimize marketing impact and refocus spends.
Seeing the results, the client extended the Integrated Decision Planning Framework (IDPF) powered by the NAVIK AI Platform to ten additional countries.
Multiple Departments. Multiple Countries. One Framework
An essential part of the IDPF was dealing with the huge amount of data coming from a wide variety of sources: marketing plans, category movements, internal and cross-team data, macro and micro factors, competition data, and marketing strategy.
Absolutdata team sorted the data inputs and prepared models to forecast consumption-based sales. We also incorporated ways for the tool to monitor growth and validate monthly and quarterly forecasts to see if any calibration was required.
The tool allowed users to access various types of data inputs and generate consumption forecasts (using causal, time-series, or ensemble forecasting techniques) or demand forecasts (with the option to specify coverage adjustment, inventory adjustment, reconciled demand forecasts, or volume comparisons). We also developed marketing mix models for each of the client’s brands, allowing them to measure the contribution and effectiveness of marketing activities.
AI Brings Clarity to Strategic Planning
Implementation of the IDPF delivered highly reliable forecasts to the client, enabled them to approach strategy sessions with greater clarity and a stronger idea of how to nurture each brand’s growth.