Demand Forecasting Software Improves Business Efficiency

By Author: Karishma Shikalgar
Total Articles: 12
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Artificial intelligence-powered solutions are becoming increasingly prevalent in the supply chain space, and they can combine vast amounts of diverse data, enabling businesses to make more accurate and proactive decisions.

In the past an experienced employee would utilize historical sales and inventory data to evaluate how much product would be required for the upcoming period. Using a bit of guesswork and many spreadsheets, that employee could get a reasonable estimate of how much inventory would be necessary to meet future demand.

Fast-forward this scenario to today’s time, when customer demand fluctuates due to social media comments, weather patterns, client reviews, or an edgy competitor making a move, and it is virtually impossible to predict accurate demand using only historical methods.

AI-powered demand forecasting software can now combine data from multiple sources, making it easier to estimate demand for any given product or series of products. This solution can pull your historical data to create a comprehensive demand forecast far exceeding the capacity of a normal human being. Using huge ...
... amounts of data, complex algorithms, and advanced analytics, AI-enabled demand forecasting creates forecasts that accurately predict the exact inventory numbers and the resources needed to meet customer demand.

Exploring AI-Enabled Demand Planning for Streamlined Processing

Before we explore how AI-backed demand forecasting can boost supply chains, we should understand its main concept. The traditional approach to inventory forecasting is called demand-driven planning. It’s based on data generated via customer orders, which is then used to forecast how much inventory will be required in the future.

Even though this is an adequate way of managing and handling inventory, it can lead to various supply chain discrepancies, mainly when demand is unpredictable or excessive. This scenario leads to understocking or overstocking, which is highly cost-draining for many businesses.

AI demand forecasting improves supply chain efficiency by using artificial intelligence to optimize the overall forecasting process while considering various factors such as current trends, historical sales data, and even social media inflated disruptions.

Artificial intelligence enriches this data and extracts vital information to predict exact demand ahead of time. Supply chain planners can evaluate demand accurately and quickly throughout the entire supply chain management process.

How Can AI Be a Frontrunner in Changing the World of Supply Chains?

Demand forecasting allows organizations to reduce the cost of supply chains and improve capacity planning, financial planning, profit margins, and risk management solutions. AI-based demand forecasting provides real-time action plans and supports decision-making based on comprehensive data analytics.

Artificial intelligence predicts sales opportunities and generates precision-based forecasts with the help of real-time data based on internal and external factors like demographics, similar product performance, weather, and social media reviews, giving supply chain decision-makers access to end-to-end visibility.

Benefits of AI-powered Demand Forecasting Software:

Supply chains that depend on accurate inventory projections for long-term planning and health can benefit exponentially from demand forecasting. The perks go well above a high level of customer service, and they can improve several areas, boosting supply chain confidence and aiding companies in achieving their goals for growth.

Increased revenue: Revenue can grow tremendously by knowing when and which product will make sizable sales in the market. Well-suited product availability ensures that you never miss a sales opportunity.
Minimized uncertainty: When it comes to supply chain optimization, uncertainty is not good news. An effective demand forecasting strategy can eliminate ambiguity by ensuring that all supply chain tasks are well-resourced and decision makers are provided with rich data information for seamless growth and progress.
Improved supply chain infrastructure: Predicting demand highs and lows is essential for the appropriate operational capacity of your supply chain. Demand forecasting contributes to effective supply chain management by maximizing order fulfillment and efficient management of inventory workforces.
Reduced overstocking and understocking incidents: The more stock you have in your inventory, the longer it takes to turn around, and the more it impacts your bottom line. Demand planning and forecasting reduce the need for safety stock by accurately reporting the exact amount you need to maintain in your inventory for optimal stock management.
Better customer loyalty: AI-enabled demand planning software makes your product available at all times, which can help you improve your customer loyalty. Accurate demand planning in the supply chain can enhance order fulfillment by driving customer advocacy and word-of-mouth branding, boosting your performance and customer experience.
Boost Your Supply Chain Management with Avercast, a TransImpact Company

Avercast’s Demand Forecasting Software enables high-end supply chain efficiency, improved cost savings, and enhanced customer experience. Our solutions powered by 250+ algorithms deliver end-to-end visibility into your future demand. We have empowered our clients to achieve their maximum potential through our years of experience and expertise. To explore more about our solutions, schedule a demo or talk to our demand forecasting experts.