Unilever reduces forecast error with Terra

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Unilever is set to deploy Terra Technology’s Demand Sensing software in the US in a bid to improve customer service and supply chain efficiency.

The maker of food, home and personal care products expects to decrease forecast error by more than 25 per cent, after piloting the software in its personal care business for several months, as well as reducing inventories and costs.

The software uses pattern recognition mathematics to decipher daily streams of data to determine which information is predictive of actual demand and to more accurately predict retailer requirements.

Doug Sloan, director of supply chain operations at Unilever US, said: “Unilever selected Terra Technology’s Demand Sensing to gain supply chain visibility and improve manufacturing planning.

“In these volatile times, it is important to respond quickly to shifts in consumer preferences and control costs. Improving forecast accuracy enables Unilever to produce the right product mix, decrease costs and better serve our customers.”

Roll out should be complete by August 2009.

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