More Accuracy, Better Results with AI
By moving to a more accurate and comprehensive AI-based solution, the client saw modeling errors shrink from about 20% to less than 5%. They also were able to make promotion decisions faster, thanks to real-time optimized calendar generation. This led to:
5.3% in annualized incremental sales ($1.73 million).
A 4.7% sales uplift for their largest US retailer.
A 7% sales uplift for their second-largest US retailer.
On-the-Fly Promo Calendar Optimization
Two of the main factors impacting this company’s promotional efforts were a lack of speed and limited data inputs. With AI at the solution’s core, additional data sources could be included in the process, resulting in models that were far more accurate. An optimization engine analyzed customized business constraints and generated calendar options geared toward maximizing sales in all feasible scenarios. And a machine learning layer continuously improved performance.
To put these insights directly into the hands of decision-makers, an interactive user interface was developed. Simple yet intuitive, this allowed non-technical users to easily model complex scenarios, identify new opportunities, and preview the expected results from these actions.
Leading the Way with TPI
Since deploying their industry-leading TPI tool, this food manufacturer has been able to generate detailed, goal-based recommendations for their retail partners in mere minutes. Their AI- and ML-enhanced solution not only gives them a fuller, more accurate picture, it also allows them to make better decisions while keeping up with the pace of today’s markets.