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Machine learning (ML)a specialized field within artificial intelligence (AI)is revolutionizing demandplanning and supplychain management. According to McKinsey , organizations implementing AI-driven demand forecasting solutions can reduce forecast errors by 30% to 50%.
It has led supplychain vendors to discuss how they currently use artificial intelligence. Further, virtually every supplier of supplychain solutions is eager to explain the ongoing investments they are making in artificial intelligence. When it came out, ChatGPT seemed like magic.
She wrote, “I have been working in the supplychain for 35 years, and we are still trying to solve the “demand” issue. Solving from a supply side seems to work for many companies I work with. Over the last two years, I actively engaged technologists and business leaders to redefine demandplanning.
Historically, supplychain leaders managed supplychains in a world of abundance. There are many factors: war, supply shortages, climate change, labor (knowledge and availability), and shifts in governmental regulation. The waste included: Negative Forecast Value Added (FVA) in demandplanning.
Supplychain teams face a similar dilemma – companies are overloaded with vast amounts of data, and the ability to sift through the noise and focus on relevant insights has become a critical capability. Decision-makers must operate with agility and speed, often orchestrating complex scenarios across vast supplychain networks.
Artificial intelligence (AI) and rapidly developing generative AI tools provide complex, real-time, and in-depth insights specific to supplychain management. Further, AI-driven demand sensing allows businesses to combine scattered data which is essential for better forecast accuracy.
At ToolsGroup, we’ve long championed probabilistic demand forecasting (also known as stochastic forecasting) as the cornerstone of effective supplychain management software. In conventional supplychainplanning , planners using basic tools (typically spreadsheets or legacy systems) forecast just one number for each item.
Today, in supplychainplanning, this could not be further from reality. Employees Cannot Get to the Right Data at the Speed of Business A war is raging between Oracle, Salesforce and SAP to automate supplychains. Supplychain was defined in 1982 as interoperability between source, make and deliver.
Safety Stock: Navigating SupplyChain Volatility Through Strategic Inventory PlanningDemand volatility represents a critical challenge for supplychain executives today, with safety stock emerging as a key strategic tool to mitigate market uncertainties.
Global supplychains have been tested repeatedly by a series of disruptive events, including the COVID-19 pandemic, U.S.-China Companies that previously prioritized cost-cutting and centralized sourcing quickly found themselves exposed to serious production and distribution risks. China trade disputes, and natural disasters.
This disconnect between AIs potential and real-world adoption presents a significant opportunity for companies to gain a competitive edge, especially in supplychain management where uncertainty is the norm. However, its important to recognize that AI and machine learning are not magic fixes for supplychain challenges.
This week in supplychain and logistics news includes Blue Yonder being selected to support Border States, an electrical distribution company, with their warehouse management needs. Clorox Plans to Begin Overhauling Its U.S Among fossil fuels, natural gas saw the largest growth, increasing by 2.5%.
Improving demand forecast accuracy is crucial for supplychain success. Traditional demand forecasting methods often fall short, resulting in inefficiencies, excess inventory, and lost revenue. Unsupervised Learning Detects hidden demand patterns without predefined outcomes.
Source: Gartner 2018. Gartner recently polled both users and vendors on which supplychainplanning (SCP) applications are employing machine learning and in three different analysis, demandplanning and demand forecasting came out top of the list. Quality management came in third.
Note: Today’s post is part of our “Editor’s Choice” series where we highlight recent posts published by our sponsors that provide supplychain insights and advice. Or, why you need demandplanning for going viral on social media. Today’s article is from Kinaxis and explores the TikTok Effect.
In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supplychain excellence. In my post Mea Culpa, I reference my work with the Gartner SupplyChain Hierarchy of Metrics. ” Let’s face it all supplychains have error.
What is Demand Forecasting in SupplyChain Management? When planning your demand forecast, its essential to master the fundamentals. Demand forecasting in supplychain management is the process of predicting customer demand, supply trends, and pricing fluctuations.
Today, I speak at the North American Manufacturing Association, Manufacturing Leadership Conference, in Nashville on the use of data to improve supplychain resilience. Background The Council of SupplyChain Resilience met for the first time this month. What is supplychain resilience? The reason?
Last week, a team from Blue Yonder attended the 2024 Gartner ® SupplyChainPlanning Summit in London. Only artificial intelligence (AI) enabled planning processes can accomplish all the required analysis, at scale and at speed, across the end-to-end supplychain.
Anyone who has done demandplanning knows it is extremely complex, with forecasting challenges and rapidly shifting consumer demand, often exacerbated by seasonality, new product introductions, promotions, and myriad causal factors (e.g. Data Variety The more different types of data sources you factor in (e.g.
Procurement and supplychain management are often used interchangeably—but in practice, the lines between them can blur in ways that create real friction. In this blog, we cover the key differences between procurement and supplychain management, and explain where the biggest disconnects typically occur.
The Connected SupplyChain. Drip Digital SupplyChain. Autonomous SupplyChainPlanning. Self-Healing SupplyChains. Touchless SupplyChains. The issue is that when companies optimize functional metrics, they throw the supplychain out of balance and sub-optimize value.
This article is a shortened version of themes & topics discussed in our newest DemandPlanning Core White Paper. Demandplanning has long been a requisite of supplychain management, but in a modern, high-speed environment, it’s become something more: a strategic lever for agility, and competitive advantage.
Supply management. Supplychain management. Supplychainplanning. Increasing Maturity of the Role of the Forecast for the SupplyChain Leader This gets me back to why technologies are not improving enterprise leadership’s ability to forecast and manage revenue. Are these terms the same?
The supplychain industry is no stranger to uncertainty. While businesses cant predict every challenge, they can take proactive steps to anticipate disruptions and strengthen their supplychain management systems with advanced demandplanning tools.
SCB Feature Report From DPW: What’s Next for AI in SupplyChain? That’s because the promise of artificial intelligence for supplychain operations is huge. It could do more to accelerate the journey of supplychain operations from the backroom to the boardroom than any other change. trillion to U.S.
Many large enterprises use one form or another of a supplychain application to help manage their supplychains. Supplychain vendors have been touting their investments in artificial intelligence (AI) for the last several years. DemandPlanning Models Really Can Learn.
Updated: February 4, 2025 According to Michigan State University , demandplanning is a supplychain management process of forecasting, or predicting, the demand for products to ensure they can be delivered and satisfy customers. Should demandplanning be placed under supplychain management, sales, or finance?
Note: Today’s post is part of our “ Editor’s Choice ” series where we highlight recent posts published by our sponsors that provide supplychain insights and advice. This article is from Michael Balint at Solvoyo and looks at the fresh produce supplychain. To read the article, click HERE.
Supplychain teams face a similar dilemma companies are overloaded with vast amounts of data, and the ability to sift through the noise and focus on relevant insights has become a critical capability. Decision-makers must operate with agility and speed, often orchestrating complex scenarios across vast supplychain networks.
But many supplychain practitioners dont realize that the most common approach to supplychain planningusing a demand-driven forecast as the primary input to future planningis just as outdated. Companies that rely solely on deterministic models are struggling to keep up with demand fluctuations.
When the pandemic started in 2020, no one could foresee the impacts of the global supplychain disturbances would last this long. Now the new norm is constant change, and agility is the name of the game when it comes to supplychainplanning. Critical inventory disruptions/deficiency anywhere in the supplychain.
In February, Klaus Niebur, the director of global supplychain risk management at Autoliv, and Jan Thiessen, the managing director at targetP!, spoke on best practices on supplychain risk management at ARC Advisory Group’s Digital Transformation in Industry conference. The implementation was not trivial.
IBP is a collaborative process involving diverse business functions that is designed to balance demand against supply in a manner that maximizes the goals of that company. This is, at many companies, a month-long process that produces a supplychainplan that spans out over several months – often 24 or 36 months.
Your Aftermarket SupplyChain is More Complex Than You Think: Stop Guessing, Start Optimizing Lets be honest: managing spare parts inventory requires specialized strategies unlike any other inventory management process. And demand patterns are highly unpredictable. And demand patterns are highly unpredictable.
With the advent of the digital era, supplychain has transformed dramatically. To increase flexibility, responsiveness, and competitiveness in the long run, the investment in supplychain digitalization will increase by 10%-15% over the next few years. If trends hold, we will achieve touchless supplychains very soon.
What we do at Enchange SupplyChain & RtM Consultancy 💹 Deliver sales growth for our clients 🌏 Work globally, with our local experts 🎓 We are Route to Market & SupplyChain experts At Enchange our passion is helping companies improve their route to market and supplychain so they can sell more, at a higher margin and lower cost.
Implementing new technologies is the top strategic priority among the 671 supplychain leaders interviewed by Blue Yonder for their 2025 SupplyChain Compass , and it is a goal they are highly confident in achieving, however, digging into the report reveals legacy technologies and data structures might hold them back in these ambitions.
Scott Fenwick, Senior Director Product Strategy for SupplyChainPlanning at Manhattan Associates. Manhattan Associates, a leading supplier of supplychain and omnichannel management software solutions, recently had a major product release that will shake up the supplychainplanning market.
Digital commerce efficiently requires the digitalization of many customer-facing operations and sourcing and procurement. For businesses of all sizes, the digital transformation of supplychainplanning became the most important initiative. . This includes internal and external data sources.
It’s also why so many of our customers are eager to share their supplychain success – and have even won awards of their own in partnership with ToolsGroup! Check out some of our most recent accolades and discover why so many companies turn to ToolsGroup for better, faster supplychain decision making.
A large multinational is undergoing an impressive supplychain transformation that will run through 2023. While the company has several different goals, two key focuses are improved agility and resilience, and more autonomous planning. A Complex SupplyChain. But even multi-sourcing is not enough.
Editor’s Note: Today’s blog is from Kevin Doubleday who discusses the importance of blockchain within the supplychain. Current SupplyChains don’t operate at the cadence of business. Integrating Blockchain within the SupplyChain could change that. Download white paper.
Many of the world’s largest companies have committed to reaching net zero by 2050, triggering a ripple effect throughout global supplychains. For most CPG brands, indirect emissions — those that occur across the supplychain — represent the majority of their carbon footprint. Retailers are following suit. In the U.S.,
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