Our client is a Consumer Goods Distribution company with a $60M consumer and a 15-person supply chain team. The company serviced national retailers and regional wholesalers, requiring precise demand forecasting to manage inventory and avoid costly stockouts or overstocks.
The Challenge
Summit relied on spreadsheets and manual forecasting models to predict demand. Forecasts were inconsistent, often based on guesswork rather than data. The result was frequent stockouts on high-demand items and overstocks on slower-moving products, eroding margins.
Inventory carrying costs ballooned, and suppliers grew frustrated with unpredictable orders. Executives lacked confidence in supply chain planning, making it difficult to support growth or respond to seasonal surges.
The tipping point came when Summit missed a major holiday season opportunity due to poor demand forecasting, costing the company millions in lost revenue.
The Solution
- AI-powered demand forecasts using historical sales, seasonality, and external factors.
- Scenario modeling to evaluate best- and worst-case demand.
- Automated replenishment recommendations linked to supplier lead times.
- Dashboards for executives to monitor forecast accuracy and inventory health.
Implementation Journey
CAST was rolled out in four agile sprints:
- Sprint 1 (Weeks 1–2): Ingested ERP sales and inventory data.
- Sprint 2 (Weeks 3–4): Built baseline forecasts using historical data and seasonality.
- Sprint 3 (Weeks 5–6): Introduced scenario modeling and what-if analysis.
- Sprint 4 (Weeks 7–8): Automated replenishment alerts integrated with supplier schedules.
The Results & Benefits
Within six months, CAST delivered measurable improvements to supply chain performance:
| Metric | Before CAST | After CAST | Impact |
|---|---|---|---|
|
Forecast accuracy |
65% |
90% |
+25% improvement |
|
Stockouts |
Frequent |
-30% |
Better availability |
|
Inventory costs |
$12M annually |
$10.2M annually |
15% reduction |
|
Supplier
collaboration |
Reactive |
Proactive |
Improved partnerships |
Beyond the hard numbers, CAST improved trust between supply chain and sales teams, while suppliers appreciated more predictable orders. Executives gained confidence in their ability to support growth and respond to seasonal spikes.
Testimonial
“CAST gave us confidence in our forecasts. We stopped guessing and started planning with data. Our inventory is leaner, customers are happier, and we finally feel in control of our supply chain.” – Supply Chain Director at a Distribution Company
Looking Ahead
Our client plans to expand CAST with:
Predictive supplier lead times using external logistics data.
Integration with transportation management for end-to-end visibility.
AI-driven demand shaping recommendations to influence customer orders.
With monthly enhancements included, CAST will continue to evolve as Summit’s strategic advantage in supply chain planning.
