Case Studies

How Fishin’ Co. Increased Forecast Accuracy and Saved Millions in Carrying Costs With Unioncrate

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August 18, 2020
4 minutes

The Challenge

Improve the accuracy of Fishin’ Co’s internal sales predictions 

The Fishin’ Company’s advanced forecasting methods have been integral to catapulting its growth into an industry leader. For years, its internal demand planning team has averaged monthly SKU-level accuracy levels (~74%) that consistently best industry averages. 

As demand for Fishin’ Co.’s products continue to skyrocket, so too have costs and liabilities across their supply chain—especially related to inventory. To reduce costs and stay ahead of the competition, Fishin’ Co. approached Unioncrate and asked them to provide consumption-driven demand forecasts that significantly improve upon its own internal predictions, and help significantly reduce inventory management costs.

Unioncrate’s demand forecasts have proven to be highly accurate and consistent. As a result, they’re actionable across the supply chain.

— Heath England, COO at The Fishin’ Company

The Solution

Artificial intelligence that transforms data into supply chain efficiencies

Unioncrate’s consumption-driven models are designed with a deep understanding of the complexities and ever-evolving dynamics of the CPG industry, and our benchmarks/insights give weight to top-selling SKUs. Our Demand Planning AI analyzes Fishin’ Co’s internal sales data—as well as all relevant external variables that impact demand, including POS data—and finds dynamic, multi-layered relationships between these datasets.

We transform these insights into action by providing strategic recommendations, such as where Fishin’ Co. can immediately realize supply chain efficiencies, avoid risks, seize sales opportunities, cut costs across the business, among other KPIs.


The Results

Unioncrate’s Demand Planning AI achieves 82% monthly forecast accuracy

In 2019 alone, our Demand Planning AI averaged 82% (WMAPE) forecast accuracy at the SKU level (with 5.83% standard deviation), achieving a peak accuracy of 91.6% (Aug. ‘19).


During the same period, our Demand Planning AI averaged 94.93% forecast accuracy at the total company level.

In 2020, Unioncrate’s forecast accuracy was an improvement of nearly 8% versus Fishin’ Co.‘s internal prediction accuracy

Year-to-date, our Demand Planning AI improved on Fishin’ Co.’s internal forecast accuracy by a monthly average of 7.64%. (Note: This graphical analysis shows a 6-month period because Fishin’ Co. supplied 6 months of predictions for the comparison.)

Unioncrate significantly reduces Fishin’ Co’s yearly inventory carrying costs

The cross-functional benefits of accurate SKU-level forecasts include working capital improvements, such as optimizing safety stock positions, improving service levels, and reducing transfer costs.

Based on a summation of industry benchmarks, inventory investments are typically tied up in a variety of carrying costs, including: inventory service fees, capital costs, handling costs (clerical and cycle counting), warehousing and storage, general risks, and other tax write-offs.

Even though Fishin’ Co.’s inventory carrying costs were already optimized at 16% of total inventory costs, Unioncrate was able to generate savings by improving the forecast accuracy by about 8%.

This improvement in forecast accuracy directly translates into a reduction of inventory levels equal to 1.3% of total inventory costs. If assuming inventory worth $10M, that's a scalable yearly savings of more than $1M!

Fishin’ Co. absorbs Unioncrate into its internal S&OP process

Our team has become a reliable part of Fishin’ Co.’s S&OP process. Our forecasts have become the basis of our client’s internal demand planning meetings, including during the first peak of Covid-19, when the stakes were at their highest.

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Case Studies

How Fishin’ Co. Increased Forecast Accuracy and Saved Millions in Carrying Costs With Unioncrate

“The dynamics of our S&OP process is completely transformed, thanks to Unioncrate. We’ve been able to automate 90% of our demand planning process and realize the benefits of accuracy across our supply chain. Our teams are now better aligned and as a result, our decision-making process is more efficient.”

Heath England

COO at The Fishin’ Company

82%

Monthly SKU-level forecast accuracy in 2019 (avg.)

7.64%

Increase in forecast accuracy (vs. internal projections)

What we provided

  • Improvements to internal forecast accuracy help Fishin’ Co reduce inventory levels by 1.3% of total inventory costs. 
  • This results in a yearly savings of $1M+ (assuming $10M in inventory).
  • 79.2% monthly forecast accuracy from Jan. ‘19 - June ‘20, an 18-month period that includes the impact of Covid-19 
  • Demand forecasts are automated, making S&OP process more efficient

The Client

The Fishin’ Company is the largest importer of tilapia in the world, and one of the largest importers of frozen fish. They supply fish products to many of the world’s largest retailers and food services companies, offering both private label and Fishin’-branded packaging options, including its Rising Tide label.

Category

Frozen > Meat > Fish

Location

HQ in Greater Pittsburgh

The Challenge

Improve the accuracy of Fishin’ Co’s internal sales predictions 

The Fishin’ Company’s advanced forecasting methods have been integral to catapulting its growth into an industry leader. For years, its internal demand planning team has averaged monthly SKU-level accuracy levels (~74%) that consistently best industry averages. 

As demand for Fishin’ Co.’s products continue to skyrocket, so too have costs and liabilities across their supply chain—especially related to inventory. To reduce costs and stay ahead of the competition, Fishin’ Co. approached Unioncrate and asked them to provide consumption-driven demand forecasts that significantly improve upon its own internal predictions, and help significantly reduce inventory management costs.

Unioncrate’s demand forecasts have proven to be highly accurate and consistent. As a result, they’re actionable across the supply chain.

— Heath England, COO at The Fishin’ Company

The Solution

Artificial intelligence that transforms data into supply chain efficiencies

Unioncrate’s consumption-driven models are designed with a deep understanding of the complexities and ever-evolving dynamics of the CPG industry, and our benchmarks/insights give weight to top-selling SKUs. Our Demand Planning AI analyzes Fishin’ Co’s internal sales data—as well as all relevant external variables that impact demand, including POS data—and finds dynamic, multi-layered relationships between these datasets.

We transform these insights into action by providing strategic recommendations, such as where Fishin’ Co. can immediately realize supply chain efficiencies, avoid risks, seize sales opportunities, cut costs across the business, among other KPIs.


The Results

Unioncrate’s Demand Planning AI achieves 82% monthly forecast accuracy

In 2019 alone, our Demand Planning AI averaged 82% (WMAPE) forecast accuracy at the SKU level (with 5.83% standard deviation), achieving a peak accuracy of 91.6% (Aug. ‘19).


During the same period, our Demand Planning AI averaged 94.93% forecast accuracy at the total company level.

In 2020, Unioncrate’s forecast accuracy was an improvement of nearly 8% versus Fishin’ Co.‘s internal prediction accuracy

Year-to-date, our Demand Planning AI improved on Fishin’ Co.’s internal forecast accuracy by a monthly average of 7.64%. (Note: This graphical analysis shows a 6-month period because Fishin’ Co. supplied 6 months of predictions for the comparison.)

Unioncrate significantly reduces Fishin’ Co’s yearly inventory carrying costs

The cross-functional benefits of accurate SKU-level forecasts include working capital improvements, such as optimizing safety stock positions, improving service levels, and reducing transfer costs.

Based on a summation of industry benchmarks, inventory investments are typically tied up in a variety of carrying costs, including: inventory service fees, capital costs, handling costs (clerical and cycle counting), warehousing and storage, general risks, and other tax write-offs.

Even though Fishin’ Co.’s inventory carrying costs were already optimized at 16% of total inventory costs, Unioncrate was able to generate savings by improving the forecast accuracy by about 8%.

This improvement in forecast accuracy directly translates into a reduction of inventory levels equal to 1.3% of total inventory costs. If assuming inventory worth $10M, that's a scalable yearly savings of more than $1M!

Fishin’ Co. absorbs Unioncrate into its internal S&OP process

Our team has become a reliable part of Fishin’ Co.’s S&OP process. Our forecasts have become the basis of our client’s internal demand planning meetings, including during the first peak of Covid-19, when the stakes were at their highest.

Testimonial Image

“The dynamics of our S&OP process is completely transformed, thanks to Unioncrate. We’ve been able to automate 90% of our demand planning process and realize the benefits of accuracy across our supply chain. Our teams are now better aligned and as a result, our decision-making process is more efficient.”

Heath England

COO at The Fishin’ Company

Automate your operations without the cost or complexity of conventional ERPs.

Eliminate blind spots in your forecast and slash hours from the S&OP process.

Unioncrate works with you to find cost and time efficiencies across your supply chain—in a way that suits your budget.

Unioncrate’s Demand Planning AI provides highly accurate sales and inventory forecasts at the click of a button.

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