DIGITAL SUPPLY CHAIN OPTIMIZATION

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Access to clean data streams directly is an optimal way of ensuring continuously reliable forecasts, but often data needs to be scrubbed and augmented before the forecast can be generated.  AI/ML can be used for the data scrubbing and augmentation.

Selection of the statistical method and algorithm is the hardest part because often many of the time series lack sufficient data to continue the time series.  AI can be used for selecting the algorithm based on the meta data, and machine learning algorithms typically improve teh statistical method accuracy.

The last step after the data identification and forecast method selection is to automate the process into an industrial strength process with good exception handling.

Inventory optimization includes optimal service level setting with AI/ML providing optimal inventory ranked by SKU importance.

Automating aales forecasts, marketing plans and / or sales planning to determine future demand.  Combining a statistical forecast with sales team input on specific customer demand information to improves forecast accuracy.  The output from demand planning is an unconstrained demand forecast

Available inventory, resource and production capacity will be integrated with the unconstrained demand forecast.  The output from this step will be constrained sales forecasts, aggregate product  dashboards, and identification of opportunities to fulfill  unmet demand.

The demand planning and supply planning teams align to resolve any supply issues and identify escalation items for the Leadership Alignment Meeting.  The key output is the data and analysis including any critical KPIs to support decision-making by the executive team.  These decisions may be investing in inventory to win an order, dealing with supply disruptions, moving production to fill in demand gaps or accelerating (delaying) new product introductions.

The demand and supply plans with issues or opportunities are reviewed and decided upon and a clear path forward is set for the short and medium term.  Additional strategic plans focusing on the long-term gaps may also be decided.

Any short-term and medium-term incoming supply issues are resolved and procurement actions are put in place.

Optimal production batches and schedules are set based on available capacity, short-term constraints, and optimization opportunities.

Operational execution and adherence to the short-term plan is reviewed and feedback is provided for the continuous improvement teams.