Power Of AI In Supply Chain Planning

Power Of AI In Supply Chain Planning

Supply chain planning is the process of managing resources, optimizing the delivery of services, balancing the demand and supply. It determines the ideal way of manufacturing and sales volume to achieve and to meet the demand of customers in the best possible way.

Supply chain planning always has qualitative data and analytical processes. Though linear supply chains involve digital supply networks (DSNs), powered by advanced technology and related systems, the way supply chain planning might significantly shift.

Moving towards synchronized planning

Synchronized planning is important for the success of the network. Organizations usually used previous data to predict future demand; however, during the non-availability of the information, planning was somehow based on assumptions that cannot be accounted for demand shifts. The integrated and dynamic nature of the digital supply network may lead to more complicated planning demands, and what companies think as planning could change fundamentally: different business tasks should be fully merged with each other as well as with an interconnected system of customers, suppliers, inventory, and production to drive the planned initiatives.

Factors necessary for synchronized planning

Fragmentation of Production
As production is becoming more interconnected globally, planners should be responsible for procuring inventory demands at multiple locations as well as the availability of the inputs. To achieve the demand, organisations need to assemble the manufacturing plants and warehouses from one location to another with other facilities to develop a complete understanding of what is being produced, what is being stored, and where it is stored.

New Technology and Data Sources
Advance technology, and wealth of data from connected systems and sources from external data allow organisations to work in the same manner, improve service and encourage growth. The emerging new technologies open new opportunities for organisations to link their data together from across their digital supply networks and analyse the information and planning capabilities.

Technologies that can be used in synchronized planning

Artificial Intelligence

AI allows supply chain monitoring systems to find out compound patterns, tactical planning, and execution while operating most decisions in digital supply networks. This changes from history-based forecast to effectively predict reorders and forecast demand. Organisations now no longer are using supply chain bullwhip; instead, they can order the right product ahead of time, shaping customer demands through substitutions, price incentives, etc.

Internet of Things (IoT)

By connecting systems and processes across the digital supply network, IoT can enable organisations to have network visibility. Having an actual picture of the physical world not only gives information at the individual product level but also visibility of network and flow of inventory continuously end to end. Planning can move away from forecasting, and instead, expect the flow of information from end to end across the network.

Blockchain

Blockchain is a secured and digital ledger system that records the transactions in combination with IoT. Using advanced technology, orders can be placed automatically with vendors based on predefined criteria. As soon as the goods are being transported, the IoT can provide on-time availability and the ability to carry out the financial exchange at the same time. By using the digital ledger system in blockchain, the need for approvals and reconciliation is eliminated.

How 3SC’s Demand Curve can help?
3SC’s demand curve is developed in-house demand forecasting software, powered by advanced data science algorithm and collaborative portal for sales and operation Planning (S&OP). It is an advanced demand forecasting tool which is enabled by machine learning models and enables demand planning process through collaborative portal. Demand Curve has other advantages as well:-
1. It outliers the correction by auto cleansing methodology using machine learning.
2. It has intuitive dashboard for S&OP review.
3. it has demand collaboration portal for consensus planning.
4. It can perform statistical forecasting using machine learning.
5. It is based on analytics as a service (AaaS) and software as a service (SaaS) software.

Please feel free to contact us for any inquiries at marketing@3scsolution.com

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