Our client requested a comprehensive solution to simulate and forecast various scenarios for short-term product Profit and Loss (P&L).
The solution incorporated both open data and external data sources such as weather, public holidays, stock indices, CPI indices, etc., integrated with historical actuals and events to create a comprehensive database for analysis and forecasting. The historical actuals serve as the foundation for trend analysis, while the open data and external data provide additional insights. By integrating various data sources, the solution provides a holistic view of the factors impacting the P&L, resulting in more accurate and reliable forecasts.
What-If Simulation capabilities enable users to adjust key parameters such as volume, discount, price, and COGS (Cost of Goods Sold) to simulate the different scenarios and see the impact on the P&L based on these factors.
The simulation solution enhances strategic planning by offering a dynamic and interactive environment to explore and compare different scenarios, assess their potential outcomes, and optimize decision-making regarding pricing strategies, inventory management, risk assessment, revenue projection, and resource allocation.