How Procter & Gamble Uses Machine Learning to Forecast Demand and Optimize Inventory Management

By: GoBeyond Team
July 3, 2025
3 min read
P&G AI-driven demand forecasting dashboard showing inventory optimization metrics

Quick Overview

Procter & Gamble (P&G) uses machine learning and advanced analytics to forecast demand by analyzing sales data, market trends, and external factors. This allows P&G to precisely manage inventory, reduce stockouts and overstock, and optimize supply chain performance, improving operational efficiency and customer satisfaction.

Procter & Gamble
Procter & Gamble
Company Size
Large multinational consumer goods company
Revenue Range
$80B+ annual revenue
Primary Challenge
Improving demand forecasting accuracy and inventory management to reduce costs and meet customer demand
Key Metrics
\- More accurate demand forecasts\- Reduced stockouts and overstock\- Optimized inventory levels\- Enhanced supply chain efficiency\- Increased customer satisfaction

The Problem

Traditional forecasting methods were less accurate, leading to inventory imbalances and lost sales opportunities

The Solution

Machine learning models analyzing historical sales, market trends, and external data to generate precise demand forecasts and inventory recommendations

Results

\- Improved forecast accuracy\- Lower inventory holding costs\- Reduced stockouts and lost sales\- Enhanced supply chain responsiveness\- Better alignment of production with demand

“Machine learning has transformed how we forecast demand, enabling us to optimize inventory and better serve our customers.”

P&G Supply Chain Analytics Team

Details

Industry
Retail & E-commerce
Departments
Data & Analytics
Use Cases
Inventory Management
Tags
GenAI
NLP
Scalability
Team Efficiency
Time-Saving
AI Tools Used
No items found.
Sources
https://appinventiv.com/blog/ai-in-inventory-management/https://www.supplychaindigital.com/technology/how-pg-uses-ai-and-machine-learning-forecast-demand-and-manage-inventory

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