In specialty chemicals, an overly optimistic sales forecast isn't just a planning problem — it's a cash flow crisis waiting to happen. Raw materials procured against numbers that never materialize expire on the shelf, capital locks up in dead stock, and high-value customers get deprioritized during shortages with no logic behind the decision. QUANTUM deployed a Collaborative Forecasting & S&OP system that eliminated shadow spreadsheets, introduced LTV-based customer tiering, and made a single Monday.com board the authoritative source for every executive planning meeting — driving forecast accuracy from 68% to 95% and cutting inventory carrying costs by 18%.
Focus: S&OP and Inventory Optimization
How a Specialty Chemicals Firm Went from 68% to 95% Forecast Accuracy — and Cut Dead Stock by 18%
The Challenge
The company faced massive "Dead Stock" issues. Sales forecasts were overly optimistic, leading to excess raw material procurement that expired before use.
The Solution
We deployed a Collaborative Forecasting & S&OP Board.
- Tech: Automated roll-ups of regional sales forecasts against procurement lead times.
- CommEx: Introduced "Customer Tiering" logic; during shortages, the system automatically prioritized high-LTV (Lifetime Value) customers.
- Change: Eliminated "Shadow Spreadsheets" by making the Monday.com board the only valid source for the monthly executive S&OP meeting.
The Impact
18% reduction in inventory carrying costs and 95% forecast accuracy (up from 68%).
