How a Specialty Chemicals Manufacturer Streamlined Demand Forecasting to Eliminate Overstock and Improve Profitability

Improving Predictions and Inventory Control: We started by deeply examining the client’s past sales data, inventory movements, and planning cycles. It became apparent that the forecasting tools in use were outdated and failed to reflect changes in seasonal demand, shifting customer preferences, and regional variations. As a result, the production and inventory plans often didn't align with what was needed in the market scenario.

We helped the client introduce more precise forecasting practices by analyzing past demand trends in greater depth. Their product lines were re-segmented to allow for more tailored forecasting, depending on region, season, and customer type. The company also established clearer stock thresholds and reorder levels, based on how quickly each item was actually being consumed and how reliably it could be replenished. These improvements allowed the client to respond more practically to demand fluctuations. Within a year, the company saw a 30% reduction in surplus inventory and much better alignment between what was produced and what was sold.

Reducing Supplier Risks and Enhancing Lead Times: A critical vulnerability in the client's operations was their reliance on a small group of suppliers, some of whom operated in regions having logistical hurdles or political instability. Delays in receiving raw materials were disrupting production timelines and leading to customer dissatisfaction.
To address this, we encouraged the client to enlarge its supplier base. This included onboarding new suppliers from more stable regions and shifting a portion of their sourcing to countries closer to their production facilities. These changes not only helped cut down delivery times but also added flexibility to the procurement process. We also suggested setting up a list of alternate suppliers for critical materials and holding moderate buffer stocks to cushion against future disruptions. These steps reduced supply-related delays by 36% and shortened the average procurement cycle by more than three weeks.

Strengthening Internal Coordination Across all Departments: During our analysis, we discovered that different departments within the company were not always aligned. For example, the marketing team would occasionally launch promotional campaigns without informing the production or inventory teams, which led to unplanned surges in demand. At the same time, sales teams were missing clear visibility into available stock, which led to missed opportunities and customer dissatisfaction.

We initiated a standardized planning procedure where teams from sales, marketing, supply chain, and production would meet regularly to align customer expectations, upcoming campaigns, and stock availability. To support this effort, we helped implement real-time dashboards that gave live data access to managers on inventory levels, orders, and promotions.

We also conducted training sessions to make sure all teams understood how their decisions fueled the broader supply chain. With these changes, the company was able to prevent campaign-driven stockouts and improve coordination across departments.
The results were visible: stock shortages during promotional campaigns fell by 48%, and the rate of on-time customer order fulfillment rose by about 30%.