Unilever is aiming to cut safety stock by up to 15 per cent after signing a global agreement to roll out a demand sensing system across the organisation.
It has been using the Terra Technology demand sensing system in North America for a year and says it decreased forecast error in manufacturing and inventory.
Unilever anticipates decreasing safety stock by up to 15 per cent following the worldwide implementation. Unilever also piloted the software in Europe and Asia, reducing forecast error by more than 50 per cent per cent.
Gary Calveley, group vice president of customer service excellence for Unilever, said: “Unilever standardise on Terra Technology’s demand sensing and inventory optimisation solutions to improve market responsiveness and decrease costs. As the global economy continues to be volatile and consumer spending remains unsteady, consumer products companies must accurately predict sales to decrease costs and maintain profits. Improving forecast accuracy and inventory planning helps Unilever meet consumer demand for products without carrying excess inventory.”