Through advanced analytics and machine learning, Intelligent Demand Forecasting can generate more accurate forecasts to improve sales and operations planning. By allowing you to reduce inventory holding costs, it can free up working capital. Additionally, it can help reduce occurrences of stock-outs while minimizing excess stock, waste and obsolescence at the same time.
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:
Properly used, intelligent demand forecasting projections can help reduce expenses, improve performance, streamline the supply chain, and improve customer service, among other benefits: