Abstract

A research is conducted on a Fast Moving Consumer Goods (FMCG) e-commerce store to determine factors that affect its sales growth. The research starts with applying the principles of customer-centric supply chain, outside-in process, and demand-driven network to analyze the key drivers of the sales growth. Multivariate forecasting and ABC classification methods are employed to predict the growth and provide recommendation for the safety stock levels of the 190 SKUs (Stock Keeping Unit) fall in the category A, B, and C. Seven major key drivers are identified. The size of the discount offered is found to be one of the most significant factors, while the people rating does not affect the sales growth. The key drivers in each category are found to be unique and tailoring the sales strategies according to the characteristics of the SKUs in each category is expected to improve their effectiveness. An ergonomic dashboard that applies human factors and user-centered design concepts is also proposed as a means to display critical information that support the store’s demand forecasting and planning strategies

Keywords:  e-commerce, multivariate forecasting, ABC classification, safety stock, ergonomic dashboard