Demand Forecasting Accuracy: Becoming reachable is Supply Chain’s holy grail

There are a multitude of ways to approach challenges resulting from inaccurate, inefficient inventory planning and forecasting. To guarantee immediate success with clear strategies, one should focus on deploying adequate inventory by optimizing the two key levers in inventory management.

First, working stock needs to be optimized for covering predictable demand.
Second, a suitable safety stock needs to be created that is able to absorb demand variability.
Considering those two responses, success is guaranteed if the two levers are approached and implemented correctly.

Anticipating customer demand correctly builds the foundation for the two response strategies. You can achieve such predictions accurately while being cost-effective by maximizing the value of your data. The key here is the application of retail sciences that draw from machine learning, artificial intelligence and decision science disciplines.

For that reason, PEBM draws on Machine Learning-based Forecasting and Inventory Optimization, allowing you to know the optimal stock level for each SKU. Thus your company will always be confident to stock the products your customer really wants.

Unlocking the value of these innovative tools creates a new capability to combine flexibility with accuracy. Through a higher readiness to deliver, you can react more flexibly to changes in customer demand while decreasing your safety stocks. Hence your business will accelerate as it can now consequently align with the customer needs while achieving significant overall inventory reduction.