Price forecasting for selected product segments
- The client wanted to understand the trends and drivers for the demand of certain product segments to allow them to dynamically adjust prices and maximize revenues.
- Before, prices were set by the country salespeople based on their domain knowledge, but without a systematic understanding of the patterns impacting prices.
- We started the project by conducting a thorough exploration and analysis of the internal and external data impacting demand, sales, order intake, and prices. The phase also included many discussions with the salespeople
- We then applied and tested several AI-modeling approaches and selected the best-performing model
- Once the AI-model was tested, we productized all the data pipelines and the AI model into the client’s environment and operative systems
Salespeople can access and test out the forecasting results via a scenario tool as follows: forecasting (2-7-month-forecasts) and performance (forecasts compared with realized prices)
Sales, Pricing, Inventory Management
The client is a leading producer of wood-based bioproducts, such as pulp, sawn timber, biochemicals and bioenergy. Their products are known for their high quality, which is based on the unique characteristics of Nordic wood.