According to a recent survey of supply chain leaders by Gartner (July 2018) 96% of respondents use predictive analytics, 85% use prescriptive analytics and 64% use AI.
By predictive analytics, the survey refers to information that empowers better decision-making, while prescriptive analytics refers to a system that provides the user with a series of calibrated options that can be weighed one against the other.
Given that technology leaders including Google have stated publicly that they have an “AI-first” strategy, this should be no surprise.
Taking a critical look at the survey, respondents are what Gartner defines as Industry leaders, so the uptake of Artificial Intelligence based software solutions is less in the wider industry. This represents a giant opportunity for innovation and process optimisation using SaaS-based solutions.
Sales and Operations (S&OP) Managers need a reliable sales forecast in order to plan the right level of production. This need is even more acute in the case of perishable products within the Food & Beverage industry, as shelf life cannot be extended (and can be as short as a few days in many cases).
Our own in-house research tells us that where solutions fails is in providing an integrated, dynamic forecasting Dashboard that displays the key metrics at a glance and allows decision makers to take action based on the AI-driven recommendations provided.
The result we’re seeing amongst our customers is:
- Less labor time dedicated to routine decision-making
- More precise forecasting helping reduce stock-outs
- Cost reductions as a result of lower overall stockholding levels and wastage
For this reason, AI is changing the rules of the game across the board, with Food & Beverage companies amongst those that stand most to benefit from optimisation.
Monday, November 2, 2020