The a2 Milk Company
Machine learning sales forecasts in the daily sales dashboard
a2 Milk's Oracle machine learning forecast came within 4.5% of actual sales, against 7.8% for human forecasts
Problem
The a2 Milk Company relied on human-generated sales forecasts. It wanted forecasts that tracked actual sales more closely.
Approach
The company used machine learning algorithms from Oracle to forecast sales. The model was fed imperfect data that left out items such as non-trading days. At the time of the report, a2 Milk was adding the forecasts to its daily sales dashboard, and the tool was also meant to predict sales over longer periods.
Results
Takeaway
The model beat the human forecast even with imperfect input data. The report gives one comparison, not a long-run track record.
Categories
- Industry
- Food and restaurants
- Business function
- Production and qualityStrategy and organization
- Innovation type
- Process innovation
- AI technology
- Predictive analytics and ML
- Adoption
- Off-the-shelf tool or platform
- Goal
- Quality and risk
- Evidence
- Company's own claim
Sources
Source summaries
iTnews reports that a2 Milk uses Oracle machine learning to forecast sales and is embedding the forecasts in its daily sales dashboard. In one comparison the machine learning forecast was 4.5% off actual sales and the human forecast 7.8% off. The model worked from imperfect data.
Full details are in the original sources.