Understanding the sources of demand has never been more challenging. With customer expectations changing quickly and getting more diverse, businesses now rely on AI-powered supply chain tools to glean more demand-related insights — and tune their production strategies accordingly.
Integrating available data about each process within the supply chain (even real-time information) and running this data through AI algorithms can help businesses establish a unified view of demand and make more thoughtful decisions. The data for analysis can be gathered from internal sources, such as orders and sales, or external sources, for example, macroeconomic factors, brand sentiment, and the number of COVID-19 cases.
As a result of such planning, AI is capable to return a detailed report of potential consumption volumes, broken down by customer and location levels. And with the detailed demand data on hand, businesses can optimize their production volumes, reduce inventory levels, store more goods closer to their customers, and cut down on unnecessary shipments.