Business & Technology
Solutions

Case Study: Portfolio Optimization at an Agrochemical company

Digital Product Building

About

AgChemical company is a family owned company manufacturing and distributing Agrichemicals

  • Company sought to explore opportunities in portfolio optimization to rationalize its portfolio
  • The goal was to build simulation tool to figure out optimal portfolio allocation under demand and supply constraints.

What We Built

We developed a custom analytics digital solution. The primary objective was to discern and implement an effective strategy for optimizing pricing and portfolio allocation. This involves the careful allocation of optimal product quantities to maximize the receipt of complex rebates—a process that necessitates a profound understanding of mathematical modelling and linear programming.

tThe optimization system must operate within a set of predefined constraints, introducing a layer of complexity to the task. These constraints encompass various factors, including demand quantity limitations, logistical considerations, and some ad-hoc business preference requirements. Successfully navigating within these constraints requires a nuanced understanding of the business environment and the ability to plan solutions that align with organizational goals.

Impact on the Organization

  • SKU rationalization: Created recommendations for shift in portfolio allocation
  • Scenario planning: Helped client scenario plan around different what if scenarios under different demand and supply constraints

Data Stack Used

  • Python, R, Pulp
  • Azure , databricks

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