# Forecasting with external factors cut inventory by 22%

> One hundred thirty macro- and microeconomic factors now feed into planning, combining forecasting, market scenarios and decision optimization.

Sector: Strategic planning. Client: Global strategic planning (anonymous, per Orion policy).

## Results

- **22%** — reduction in inventory
- **130** — external macro- and microeconomic factors in the model

## The challenge

Internal history alone does not anticipate market and economic shifts. Exchange rates, industry activity and macroeconomic indicators change demand before the change shows up in sales.

Planning needed to incorporate what happens outside the company, not just project the past forward. Without that, every market deviation reached inventory as either excess or shortage.

## The approach

Orion combined forecasting and decision optimization models, with 130 external macro- and microeconomic factors built into the model.

Generating market and economic scenarios made the projections more accurate and carried that information through to the planning decision. The result was a 22% reduction in inventory.

## Project objectives

- Incorporate external indicators into demand forecasting.
- Plan on market and economic scenarios rather than a single projection.
- Reduce inventory without compromising service.

## About the company

- 130 external factors in the model
- Forecasting and optimization combined
- Market and economic scenarios

## Solution applied

[Demand Forecasting](https://orionotimizacao.com/en/solutions/demand-forecasting) — Models that learn from your history and external indicators to anticipate sales with real accuracy.

---

HTML version of this page: https://orionotimizacao.com/en/case-studies/external-factor-forecasting-inventory-reduction
Esta página em português: https://orionotimizacao.com/estudos-de-caso/previsao-com-fatores-externos-reducao-de-estoque
Index for agents: https://orionotimizacao.com/llms.txt · Sitemap: https://orionotimizacao.com/sitemap.xml
Contact: WhatsApp +55 (54) 99167-8345 · orion@orionotimizacao.com