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Software Boosts Shipment Forecast Accuracy

Manufacturer Kimberly-Clark uses Multiple-Enterprise Demand Sensing to reduce safety stock inventory.

Supply chain provider Terra Technology announced that manufacturer Kimberly-Clark has chosen its Multi-Enterprise Demand Sensing software to improve shipment forecast accuracy.

Terras Multi-Enterprise Demand Sensing (MDS) enhances shipment forecast accuracy, improves service levels and reduces inventory costs.

In a recent pilot using POS data from North Americas largest retailers, the software was found to improve shipment forecast accuracy by 40%.

Commenting on the agreement, Gene Arnold, Kimberly-Clarks vice president of sales and operations planning, said the software would better synchronize a strategic monthly shipment forecast process with daily order execution.

MDS enables us to use customer data along with our own order and shipment history to optimize a short-term forecast, said Arnold. The shipment forecast accuracy benefit in this horizon is expected to enable a meaningful reduction in safety stock inventory.

Terras Demand Sensing software analyzes daily demand signals, applying advanced mathematics to downstream data and decreasing shipment forecast error by up to 50%.

According to AMR Research, downstream data can reduce demand latency by 90%, improve out-of-stock sensing by between 2 to 4%, and improve revenue 1 to 3%.

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