Kimberly-Clark Makes Sense of Demand

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In 2007, Kimberly-Clark began a complete end-to-end overhaul of its supply chain. The company implemented Terra’s Multi-Enterprise Demand Sensing to gain more visibility into real-time demand trends and improve forecast accuracy. Why is forecast accuracy such a big deal for Kimberly-Clark? A one-day reduction in safety stock for one business unit can equate to $10 million in savings. So far, Kimberly-Clark also has decreased forecast error by up to 35 percent, which translates into one to three days reduction in safety stock.