Leading Global Vision Care Organization

Quota Setting for their vision care business unit

Situation

• Challenges in Quota Setting for Vision Care Business Unit:
  • Lack of market data made quantification of potential and market standing unknown.
  • Setting quotas for a diverse product portfolio at different life cycle phases posed significant challenges.
  • Current methodology relied on statistical parameters, requiring extensive manual work and lacking transparency for the sales team.
• Client’s Objectives:
  • Automate manual quota-setting methodology to save time and increase efficiency.
  • Achieve high process automation, change agility, and responsiveness.
  • Incorporate local guidance and knowledge into quota allocation.
  • Model different factors and evaluate the quality of allocated quotas.
• Key Requirements:
  • High levels of automation and repeatability using statistical parameters.
  • Agility and flexibility to explore various permutations and combinations of historical sales and growth parameters.
  • Use historical sales and growth-based parameters, considering local knowledge.
  • Analytical visualizations and statistical summaries to assess fairness and performance.
  • Customization of historical periods, with caps and floors to handle outliers.
  • Define scenarios using different forecast scenarios.
  • Deployment of integrated quota management platform with backup support and service operations.

Approach

• Evaluation of Existing Process:
  • Due to lack of market data, scrutinized current process for quota allocation.
• Integration of Statistical Process:
  • Integrated current statistical process into tool for comparison with different models.
  • Enabled addition of scenarios to statistical process for enhanced analysis.
• Model Implementation and Comparison:
  • Developed models based on volume, volume + growth, and existing statistical models with scenarios.
  • Compared results of different models for effectiveness.
• Utilization of ML-Based Sales Forecasting:
  • Utilized ML-based sales forecasting trends for mature products with stable history.
  • Incorporated trends in quota setting process for improved accuracy.
• Analytical Visualizations:
  • Employed post-hoc analytical visualizations to evaluate methodologies for fairness, performance, and outliers.
• Comparison with Actual Sales Results:
  • Compared quality of quotas generated using traditional statistical process and new Aurochs processes with actual sales results.
  • Assisted client in identifying gap areas in entire process for refinement.