FMCG Manufacturing · DMK Group

AI-Driven Demand Forecasting and Product Mix Optimisation

The Challenge

DMK Group is a large dairy producer, processing over 5 billion kg of milk annually across a complex multi-product, multi-channel manufacturing and distribution operation. Planning ran through disconnected systems and manual processes across functional teams, creating challenges across:

Siloed data across sales, manufacturing, finance, and supply chain
Demand forecasting driven by gut instinct rather than data
Product mix decisions made without cross-functional visibility

Products that appeared profitable were absorbing capacity and creating inefficiencies invisible to any single team. No existing tool could analyse product demand, operational impact, and profitability together.

Without a unified data model, demand forecasts were subjective, and supplier pricing negotiations lacked a grounded, data-driven basis.

The Solution

An AI-driven planning platform was deployed using Q-nnect data platform. The solution included:

Unified data across sales, finance, manufacturing, and supply chain
AI-driven demand forecasting with predictive and simulation modelling
Product mix optimisation engine with scenario testing and simulation
Organisation-wide visibility for planning, pricing, and supplier negotiations

Disconnected systems and manual planning processes were replaced with a unified AI platform giving all functional teams a shared, real-time view of demand, capacity, cost, and margin.

The Results

The client observed the following outcomes:

Higher margins from an optimised product mix
Improvements in demand forecasting accuracy
Business units gaining instant insights from multiple data sources

Published outcomes at comparable AI-driven FMCG planning deployments also identify:

Inventory holding costs: 5–10% reduction, from tighter demand-driven replenishment
Stock-outs: 20–30% fewer, from optimised product mix and demand-aligned production
Revenue uplift: 2–5%, from AI-driven product mix recommendations

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