ResagratiaResagratiaResagratia
+234 806 299 1199
contact@resagratia.com

Case Study: Analytics for a Polythene (Nylon) Manufacturing Company in Nigeria

  • Home
  • Business
  • Case Study: Analytics for a Polythene (Nylon) Manufacturing Company in Nigeria
Case study analysis of polythene company in Nigeria

Polythene manufacturing, which basically involves 3 steps – extruding, printing and cutting, has witnessed an increasing demand over the last couple of years. As retail shopping booms, the demand for nylon packaging has equally increased.

With a population of over 185 million and a population growth rate of over 2.6% per annum, the demand for polythene in the form of shopping bags, pure water nylon, packing bags, bread wrappers etc., keeps on growing. A non-exhaustive list of the target market for polythene would include pharmacies, water production companies, restaurants, supermarkets & malls, traders, and bakeries.

From raw data to insights

Resagratia was commissioned by a Nylon manufacturer to digitize some processes and conduct analysis on sales and customer accounts. Largely, most transactions were recorded manually on paper and stored accurately in folders.

To run the proof of concept (POC), these transactions were transferred to Excel workbooks and a new template for data entry and continuous reporting was developed. The data was then cleaned and aggregated while extracting certain features for performing classification analysis.

The result was an automated dashboard in Microsoft Power BI from which the client could assess the:

  1. Total sales to various customers, classified into the type of products
  2. Monthly sales over time
  3. Customer closing balances available for all periods – months and years
  4. Aging of customer accounts
  5. Overall yearly sales and seasonal trends and patterns
  6. Quantities of products sold over time

Before now, the client mainly relied on intuition and high-level calculations for making business decisions. The development of this tool facilitates new levels of analytics and insights generation that enables the client to better manage customers and predict sales.

Asides from cutting down reporting time from weeks to minutes, the client can also have access to a solution to better monitor the performance of the sales of its products.

This case study mainly covers 1 year of analysis for 6 customers with the option to include additional years for a robust solution. The data is for demonstration purposes only and proper care has been taken not to divulge confidential data.

Please find the PDF below.

File name : Resagratia-Case-Study-From-Raw-Data-to-Insights.pdf

Insights from the analysis of Company X

The aspects that stood out the most to the client were the aging analysis and products sales trends of the various customers. We’ve summarised some insights worthy of note below.

  • Company X produces polythene in the form of Pure Water Rolls and Printed Packing Bags. Customers usually purchase a single product with a few purchasing both products.
  • Company X enjoys increased sales within Q1 and Q2 every year, with peaks especially occurring between February and April.
  • Towards the end of the year, sales of Printed Packing Bags and Pure Water Rolls pick up, possibly due to the festivities.
  • Overall, for the 6 customer accounts considered for the POC, sales of Printed Packing Bags exceeded that of Pure Water Rolls in the year 2019 by over 36%.
  • Analysis of sales of Pure Water Rolls to Customer 1 revealed declining yearly sales from 2017 to 2019. Looking at 2019 sales to Customer 1, the regular peaks occurring between February to April have been levelled with similar transaction volume occurring throughout 2019. This could signify that the customer is not pushing as many sales of pure water as expected, or that the customer now prefers to purchase a particular quantity of Pure Water Rolls from the client. Either way, it might not be the best outlook going forward for the client.
  • Even though the total KG of Pure Water Rolls purchased by Customer 1 in 2018 was more than that of 2017, revenue from 2017 was 15% higher.

What do you think will happen in 2020 regarding sales of Pure Water Rolls to Customer 1?

What next?

Resa Academy is finally set to launch in March 2020. This will be 6 weeks of intensive analytics workshops using Microsoft Power BI, Excel and Python. As a bonus, we will also focus on building real-life analytics solutions for the Open Analytics Platform.

Our ethos bears the marks of quality, collaboration and excellence, which is why this academy is perfect for beginner to early intermediate learners. We will begin on March 7 & 8.

Register here.

Resa Academy

To find out more about what we do, reach out to us. Don’t forget to subscribe to our latest insights.

Related article – Insights Dashboards – Nigeria’s 2020 Proposed Budget

The previous article – How to build a location intelligent Power BI dashboard