Originally Published on: QuantzigQuantzig’s Oil and Gas Demand Forecast Enabled Better Insights into the Sales Cycle 

In the ever-evolving global landscape of the oil and gas industry, challenges like upstream volatility, midstream constraints, and dynamic customer demands necessitate innovative solutions. Quantzig, a trailblazing leader in analytics, embarked on a transformative journey to address these challenges for a major global player in the oil sector by enhancing its demand forecasting systems.

Challenges Confronting the Oil and Gas Company

A significant player in the oil and gas sector approached Quantzig with challenges related to substantial sales and inventory data. The absence of tools for accurate demand forecasting resulted in issues such as overstocking, understocking, reduced margins, unfulfilled orders, and elevated holding costs. In response, Quantzig was engaged to deploy a robust solution to enable precise demand forecasting, ensuring timely production and delivery.

Quantzig’s Advanced Demand Forecasting Analytics Solution

Quantzig's experts initiated a comprehensive approach to overhaul the client's demand forecasting strategy. Leveraging reliable data sources encompassing inventories, sales, promotions, and customer contracts, an automated data pipeline was engineered for seamless data collection and cleansing. Advanced machine learning models were then employed to forecast demand on a weekly and monthly basis for all products.

The process involved feature selection, model analysis, and outlier assessment, resulting in the development of time series models effectively deciphering changing trends and volatility in sales demand. A reclassification of products based on sales revenues was implemented, culminating in a comprehensive oil and gas demand forecast incorporating seasonality, lead times, and event-based predictions.

Impact Analysis of Quantzig’s Solutions

Quantzig's demand forecasting analytics solutions delivered transformative outcomes for the client:

  • Reduced inventory and finished goods holding costs by 7%
  • Decreased operating costs by 6.5%
  • Streamlined the order management process
  • Increased profit margins by 15%
  • Achieved a 24% reduction in unfulfilled orders
  • Provided insights into the sales cycle
  • Improved demand forecasting accuracy by up to 85%

Key Achievements

Quantzig's solutions effectively addressed the client's challenges, enabling the formulation of an analytics-driven demand-supply plan. The enhanced demand forecasting accuracy streamlined production and delivery, leading to reduced overheads and increased profit margins. The client achieved an impressive 85% improvement in demand forecasting, marking a significant stride towards growth.

The Vital Role of Demand Forecasting in the Oil and Gas Industry

Demand forecasting is pivotal for oil and gas companies seeking to reduce waste, optimize resource allocation, and bolster sales and revenue. Quantzig's analytics solutions predict demand, optimizing production and delivery while minimizing wastage. These insights mitigate inefficiencies arising from uncertainty, monitor price fluctuations, and provide a roadmap for future business growth.

Key Insights

Demand forecasting solutions are indispensable for projecting accurate demand, reducing uncertainty, efficiently meeting consumer demand, minimizing stockpiling, enhancing supply chain management, increasing profit margins, and gaining insights into sales cycles.

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