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Food supply chain:
18% less inventory spoilage

We built an AI demand forecasting system that combines past sales, weather and regional economic signals to schedule production and plan deliveries for short-shelf-life products.

Industry: Manufacturing & EnergyService: AI & Automation

Less inventory spoilage
18%
Production scheduling
Dynamic
Distribution routes
Optimised

Overview

Project
at a glance

Business
Global food and beverage manufacturerProduction hubs supplying many markets with goods that have a short shelf life.
Partnership
AI product developmentWe built the forecasting models, the production scheduling and the distribution routing.
Goal
Match supply to real demandMake the right amount, in the right place, before short-shelf-life goods spoil.
What we built
AI demand forecasting and supply chain systemForecasts that adjust production schedules and delivery routes automatically.

Client

Who we
built it for

Nestlé

Global food and beverage manufacturer

Manufacturing & Energy
About the client
Production hubs supplying many markets with goods that have a short shelf life.
What they needed
Make the right amount, in the right place, before short-shelf-life goods spoil.
Where they were
Demand for short-shelf-life products shifted with the weather and local economic conditions, so fixed production plans often made too much or too little.

Engagement snapshot

Industry
Manufacturing & Energy
Service
AI & Automation
Engagement
AI product development
Delivered
AI demand forecasting and supply chain system
Headline result
18% · Less inventory spoilage

The challenge

What was getting
in the way

Demand for short-shelf-life products shifted with the weather and local economic conditions, so fixed production plans often made too much or too little.

Surplus stock spoiled before it sold, and delivery fleets were not always dispatched in the most efficient order.

  • Spoilage

    Overproduced short-shelf-life goods expired before sale.

  • Shifting demand

    Weather and local economics changed demand quickly.

  • Inefficient routes

    Fleet dispatch did not follow demand closely.

The solution

What
we built

  1. 01

    Forecasts local demand

    Models combine historical consumption, local weather events and regional economic indicators.

    Inputs
    Sales, weather
    Signals
    Economic indicators
    Output
    Demand forecast
  2. 02

    Adjusts production

    Production schedules across manufacturing hubs update automatically as forecasts change.

    Scope
    Manufacturing hubs
    Updates
    Dynamic
    Goal
    Less spoilage
  3. 03

    Plans distribution

    Distribution routing and fleet dispatch are optimised so products reach shelves faster.

    Routing
    Automated
    Fleet
    Dispatch planning
    Result
    Faster delivery

Key features

What made it
useful

  • DEMAND FORECASTING

    Forecasts that see the weather

    Models combine past sales, local weather and economic indicators to forecast demand.

    Business impact

    18% less inventory spoilage

  • PRODUCTION SCHEDULING

    Plans that follow demand

    Production schedules across hubs adjust automatically as forecasts change.

    Business impact

    Less overproduction

  • ROUTE OPTIMISATION

    Faster to the shelf

    Distribution routing and fleet dispatch are planned around forecast demand.

    Business impact

    Faster delivery to shelves

Before and after

How the work
changed

Production plans

Before

Fixed schedules

Plans did not react to changing demand.

After

Forecast-driven

Schedules adjust as demand shifts.

Spoilage

Before

Surplus expired

Short-shelf-life goods spoiled in stock.

After

18% less spoilage

Production matches demand more closely.

Distribution

Before

Static routes

Fleets followed set dispatch patterns.

After

Optimised routes

Products reach shelves faster.

Results

The business
difference

  1. WASTE

    18% Less Spoilage

    Less spoilage

    Inventory spoilage of short-shelf-life goods dropped by 18%.

    Before: Fixed PlansAfter: Forecast-Driven

  2. DELIVERY

    Faster Delivery

    Faster to shelves

    Optimised routes get products to shelves faster.

    Before: Static RoutesAfter: Optimised Routes

  3. PLANNING

    Demand-Led Production

    Supply matches demand

    Production adjusts to weather and economic signals across markets.

    Before: ReactiveAfter: Predictive

Testimonial

What the client
says

“Balancing supply and demand across global markets is incredibly complex. The forecasting models reduced our inventory spoilage by 18% and optimized our distribution routes to ensure products reach shelves faster.”
Varun MitraHead of Digital, Data and Analytics – Supply Chain, Nestlé

Key results

  • 18% less inventory spoilage
  • Faster delivery to shelves
  • Production matched to demand across markets

Trust and control

How we kept it
safe and reliable

  • 01

    Planner approval

    Supply chain teams review schedule changes.

    HUMAN IN CONTROL
  • 02

    Tracked accuracy

    Forecast accuracy is monitored over time.

    MEASURED
  • 03

    Explainable forecasts

    Planners can see the signals behind each forecast.

    EXPLAINABLE
  • 04

    Adjustable inputs

    New signals and markets can be added.

    ADAPTABLE

Faster delivery

Built on tested foundations

Reusing tested components let the team focus on each market's demand patterns.

  • Data integration

    Tested connectors brought sales, weather and economic data together.

  • Forecasting framework

    A reusable forecasting setup was tuned to short-shelf-life products.

  • Scheduling engine

    Ready-made scheduling logic updates production plans.

  • Routing module

    Tested routing components plan fleet dispatch.

FAQ

Straight
answers

Have a different question? Ask it on a 30-minute call.

Book a call

We built an AI-driven supply chain and demand forecasting system. It analyses historical consumption data, local weather events and regional economic indicators, then automatically adjusts production schedules across manufacturing hubs and optimises the dispatch of delivery fleets for short-shelf-life products.

Make what will actually sell

If short-shelf-life stock is spoiling, we can build forecasting that matches production to real demand.