From Data to Decisions: CPG Demand Forecasting with ML

In an environment where demand planning is increasingly difficult, machine learning (ML) models help generate accurate forecasts and allow us to better plan the business. Machine learning for demand fore- casting goes beyond traditional statistical models using just sales data. In this article, I discuss how ML models can use a variety of data inputs including consumption data, promotions, social media, weather, economic data, and more. I also reveal the importance of ‘forecast explainability’ when using ML. This avoids a ‘black box’ approach and allows us to understand the individual components of the forecast and their contribution, helping us to understand and better communicate the demand ...