Intelligent Demand Forecasting enables an organization to more accurately plan for the investment in, or allocation of, facilities, equipment, raw materials, inventory and resources at the right time. Never before have businesses been under such pressure to deliver products and services more quickly and accurately. The implications of demand forecasting are significant for businesses that rely on projections to run operations in an efficient, cost effective manner.

Yet, it is common practice to base demand forecasting solely on historical demand models, generally failing to incorporate domain knowledge, nor the latest advancements in statistical modeling. In addition, it is commonplace to override projection results and make adjustments based on “gut feeling” without objective justification. Often companies react to demand spikes or forecasting inaccuracies by investing in technology, without addressing fundamental business processes. Without the proper foundation in place to evaluate, make data-driven decisions and take action, innovative technologies prove to be of little value in and of themselves.

There are several key steps that we take to enable your transition from a basic, ad-hoc or reactive demand forecasting to true intelligent demand forecasting:

• Setting objective, data-driven cultural fundamentals, such as data sharing between cross-functional teams and ensuring everyone from executives down to the shop floor have a basic understanding of which key metrics may indicate good or bad performance
• Robust business processes that lay the foundation for effective capture, review and reaction to the forecasts delivered
• Expert analysis of the multi-dimensional aspects of historical demand and relevant variables for each product category, SKU or other applicable levels
• Assessment and application of the most appropriate machine learning and advanced statistical techniques for each business process

Properly used, intelligent demand forecasting projections can help reduce expenses, improve performance, streamline the supply chain, and improve customer service, among other benefits:

• Inventory Management: Improve production planning, reduce inventory holding costs, reduce occurrences of excess stock, decrease obsolescence, reduce waste and minimize disposal costs
• Order Fulfillment: Increase efficiency and timeliness with which orders and intercompany shipments are delivered, reduce errors and expenses associated with expedited shipping and returns, and decrease machinery and personnel idle time
• Procurement: Make better raw materials purchasing decisions - order quantities and reorder points - thereby reducing expedited shipping and rush fees
• Staffing: Get better visibility into demand and production needs that allows for the right allocation of resources, well in advance of labor needs