Utilizing Machine Learning to Free up Working Capital
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May 20, 2024
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A major American educational publishing company hired FTI Consulting to free up working capital by predicting sales to reduce overbuying and underbuying and accurately forecast financials.
Our Impact
- Our experts reduced wastage, freeing working capital by 10% of the client’s annual purchasing spend.
- FTI Consulting provided the client with the first stock keeping unit (“SKU”) and region-level forecast, enabling improvements in planning and forecasting accuracy.
- FTI Consulting made recommendations across sales, supply chain and IT to improve efficiencies, accuracy and architecture and identified data quality issues and potential solutions to improve predictive forecasting in the future.
Our Role
- FTI Consulting built a machine learning-based predictive engine to project revenue and demand within 0.3% accuracy and recommended the technical, procedural and operating model integration of the engine into the company.
- Our experts extracted, analyzed and corrected the client’s sales history, sales opportunities and customer data for architectural and quality issues.
- The team combined client data with macroeconomic and school-level enrollment and trend data to create a holistic view of the market and imported the transformed data into numerous machine learning models built to predict sales revenue for a subset of grades, subjects and states.
- Our experts built the business case for reducing overproduction and wastage and developed a series of recommendations, including revenue growth opportunities, supply chain efficiency gains and data and technology improvements.
Published
May 20, 2024
Key Contacts
Senior Managing Director
Senior Managing Director
Senior Managing Director, Global Head of Data Science