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Machine Learning in Demand Planning: How to Boost Forecasting

ToolsGroup

Machine learning (ML)a specialized field within artificial intelligence (AI)is revolutionizing demand planning and supply chain management. According to McKinsey , organizations implementing AI-driven demand forecasting solutions can reduce forecast errors by 30% to 50%.

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Demand Planning: Whipped And Chained by Tradition

Supply Chain Shaman

Over the last two years, I actively engaged technologists and business leaders to redefine demand planning. In the industry, supply-centric techniques reign with lots of bravado and messaging on control towers, Demand-driven Materials Requirements Planning (DDMRP), and generative AI. Or planned orders to purchase orders?)

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Probabilistic Forecasting: The Future of Supply Chain Planning

ToolsGroup

Advanced supply chain planning software leverages these probability distributions to optimize inventory targets, balancing service levels against carrying costs with mathematical precision. However, this approach ignores real purchasing behavior, such as customers buying complete sets of four tires. The result?

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Aligning Supply Chain Metrics to Improve Value

Supply Chain Shaman

In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supply chain excellence. To manage continuous improvement, companies need a clear definition of excellence and organizational alignment to that goal. They do not excel in planning or forecasting.

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Dancing in the Ring of Fire

Supply Chain Shaman

Each executive has a different perspective on the definition of supply chain excellence, but they are never discussed and aligned. His organization purchased an advanced planning technology from well-known best of breed provider, and the implementation should have been successful, but it was not. What Is The Ring of Fire?

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Just Jump

Supply Chain Shaman

The answer is not as simple as connecting Customer Relationship Management (CRM) to Advanced Planning (APS). Or gradually introduce outside-in signals to conventional demand planning. The shifts over the last decade are profound: Is the answer a Supply Chain Center of Excellence? Lack of executive buy-in.

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Pandemic Lessons For Supply Chain Leaders

Supply Chain Shaman

The Failure of Existing Demand Planning Solutions. During the pandemic, supply chain leaders turned off their demand planning solutions. Re-implement demand planning, trade promotion management, and revenue/price management together to improve the baseline demand signal. Lessons Learned. The reason?