Business Case
Fizzing Forward
Propelled by AI-Enhanced Simulation Engines
Business Challenge:
A carbonated drinks manufacturer operating on a global scale grappled with the challenge of enabling its business users to swiftly simulate desired revenue management outcome probabilities, all while utilizing actual data.
One of the key pressing questions was how to accurately predict business consumption, with drastic shifts in consumption patterns due to the pandemic and lockdowns. Therefore, the company sought a solution that would not only address the complexities of demand forecasting but also factor in the pandemic-induced fluctuations in consumption patterns.
The complexity of planning product pricing, placement, and mix further compounded the issue as achieving revenue targets required meticulous planning and strategy. Manual approaches to decision-making proved insufficient for making accurate pricing decisions aligned with desired benefits.
The need to efficiently translate these decisions into the market added another layer of complexity, necessitating a more user-friendly and effective environment for pricing strategy formulation and execution.
To maintain competitiveness and enhance revenue growth, a streamlined solution was imperative to empower the business with data-driven simulations for quicker and more accurate revenue management decisions.
Solution:
To overcome these challenges, our solution aimed to empower the globally operating carbonated drinks manufacturer by enhancing global demand forecasting and refining the simulation engine for improved business outcomes. The core components of the solution included:
- Upgraded Forecasting: Our expertise was leveraged to enhance demand forecasting globally, specifically for CPS forecasting. This upgrade laid the foundation for more accurate and informed decision-making across the organization.
- Advanced Power BI Modeling: We focused on enhancing the simulation engine through advanced Power BI modeling within the RGM Simulations Toolkit. This step aimed to provide the client with a cutting-edge tool to generate insights, simulate scenarios, and drive more effective revenue growth management strategies.
- Collaborative Global Rollout: Working closely with the RGM team at a US location, where we planned and executed the global build and rollout of the enhanced solution. This collaborative effort ensured that the solution was seamlessly integrated into the company’s operations across regions.
Through these comprehensive enhancements, the client was equipped with an upgraded demand forecasting system and a refined simulation engine, enabling them to make more informed decisions and drive business growth. Our partnership with the international manufacturer extended beyond technology implementation, encompassing strategic planning and global coordination to ensure the successful deployment of the solution.
Solution Suite:
The Transformation:
The transformation embarked upon by the company was marked by a profound shift in how the globally operating manufacturer approached decision-making, achieved through a series of strategic initiatives:
- Advanced Simulations: A pivotal aspect of the transformation was the implementation of a system that harnessed the power of thousands of simulations running in the background. This enabled agile and informed decision-making by rapidly generating insights.
- Enhanced Outcome Matching: The company focused on refining the environment of simulation results to pinpoint the closest possible match to their desired outcomes. This improvement ensured that the decision-makers could confidently select strategies that align with their goals, optimizing the potential of each decision.
- Data-Driven Predictability: By harnessing both traditional and novel datasets, the company optimized their demand forecasting per market. This empowered them to navigate the complexities of varying consumption models, resulting in improved predictability in demand forecasting across diverse markets.
- Market-Centric What-If Analysis: The transformation included running simulations on a market-per-market basis. This approach allowed the company to conduct in-depth what-if analyses, aligned with the specific needs and dynamics of each market. The simulations provided insights based on the user-defined parameters and available baselines, such as price elasticities and volume transfer.
This transformation represented a paradigm shift for the company, enabling them to transition from reactive decision-making to proactive strategies backed by data-driven simulations. The integration of advanced simulations, outcome optimization, and tailored market analyses elevated the company’s decision-making processes to new heights, fostering adaptability and growth even amidst complex and uncertain market dynamics.
Transformation Results:
- Ability to run thousands of simulations in the background
- Rapid & user-friendly decision-making enabled by advanced simulations and insights
- Enhanced outcome matching for aligned strategies
- Enhanced predictability through data-driven insights
- Market-centric what-if analyses for informed decisions
Table of Contents
Solution Suite:
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