Argon & Co helps food company enhance logistics forecasting with new AI tool
Argon & Co helped a French food company, operating two warehouses and employing around 200 people, improve its logistics planning and workforce optimisation. The project increased forecasting accuracy and operational efficiency across the business.
The French company ran two warehouses and faced a number of challenges in its logistics planning process. Traditionally, planning was based solely on the sales forecast, which did not provide the level of detail needed to optimise operations.
To translate logistics forecasts into team workloads and schedules, the Logistics team would combine the (limited) sales forecast with several conversion ratios. However, this approach did not deliver sufficient accuracy.
Teaming up with Argon & Co, the company restructured its warehouse activity planning around a single machine learning tool. The tool enabled visualisation of forecasts and validation of projected workloads.
The benefits
The automated tool supported multiple areas of the business, helping the client to increase forecasting accuracy and optimise workforce allocation. Having a single tool available across the business also improved employee visibility of shift schedules and highlighted opportunities to adjust hours according to operational needs.
Greater operational transparency improved working conditions, and interim resources could be deployed more effectively.
The machine learning forecasting tool also helped the client anticipate transportation capacity requirements on its sites – particularly important during peak periods when space was limited. More accurate forecasting reduced inefficiencies in goods transportation and strengthened relationships with carriers.
A prototype of the forecasting tool was developed in just six weeks. Following a six-week pilot, the tool was fully integrated into the client’s operations, with the complete process taking only two months.
Since implementation, the client has seen multiple operational improvements that provide both commercial and cultural benefits. Forecasting accuracy has increased by 13 percentage points, reducing the likelihood of over-forecasting and allowing the company to address long-standing over-staffing issues.
The automated nature of the tool has also halved the time required for planning and validating workloads. This has freed employees from administrative tasks, giving them more time to explore innovative ways to further optimise operations.
Argon & Co is a global consulting firm specialising in operations, supply chain and procurement. The firm is headquartered in France and has offices around the world.
