A critical role of the supply chain function to develop and maintain accurate forecasts for products and services. This role involves analyzing historical sales data to identify key components such as sales trends, seasonality, holidays, and promotional events to predict future demand, ensuring optimal inventory levels and minimizing overstock and stockouts.
Source:: Mckinsey
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AI Agent Tasks
Demand Forecasting:
- Develop and maintain advanced machine learning and statistical forecast models for various products, product categories, and customer segments at multiple levels of aggregation and time horizons.
- Analyze historical sales data and new product introductions.
- Monitor forecast accuracy, identify significant variances, and implement corrective actions.
Inventory Optimization:
- Provide input to the supply planning team to develop inventory strategies, including safety stock levels, reorder points, and allocation plans.
- Monitor inventory performance against demand forecasts and adjust plans as needed to prevent stockouts and minimize excess inventory.
- Identify and manage potential risks related to demand volatility and supply chain disruptions.
Cross-Functional Collaboration & Consensus Building:
- Facilitate collaborative planning with sales, marketing, finance, and production teams, offering a demand plan that serves as “one version of the truth.”
Reporting and Analysis:
- Prepare relevant dashboards pertaining to the demand planning process, including forecast accuracy and demand variability.
- Develop key performance indicators (KPIs) to measure and track forecasting effectiveness.