Cash forecasting accuracy improved upto 95%
Automated cash flow forecasting solution with high-end models enhances financial planning across 34 marketsBusiness Challenge
The client is a leading multinational beverage company with a diverse product portfolio serving 65+ markets globally. The Global Operations team was challenged with inaccurate cash forecasts generated by the existing manual Excel-based solution. The rudimentary solution was unable to account for market fluctuations and external factors. They wanted a fully automated solution that would not only generate highly precise real-time forecasts but also showcase the impact of macro-economic parameters on different cash components across major markets.
Sigmoid Solution
Sigmoid created a customized cloud-based cash forecasting solution using advanced ML algorithms to estimate future cash flows from multiple markets and optimize the cash for the current year. Robust predictions with monthly level granularity were generated for 34 global markets across 3 working cash components– creditor, debtor, and inventory. The consumption of the forecasts were facilitated by interactive PowerBI dashboards that offered insights and cash visibility. A simulator was integrated into the dashboards to showcase the cause-and-effect relationship of various macroeconomic, marketing (media spends, consumer spending etc.) and other exogenous factors on the overall cash forecasts.
Business Impact
Sigmoid’s cash forecasting solution helped achieve better cash positioning across global markets, ensuring financial growth. The Global Operations team was able to identify opportunities for unlocking cash from working capital and streamline financial planning for the entire business.
<5% forecast
error across all markets
75% reduction
in model run time due to code parallelism
Greater observability
for the impact of economic and business levers on cash flow
