Demand planning is tricky.
Accuracy is a constant challenge.
And the dread of errors always looms large.
Moreover, spreadsheets need a great deal of time and effort to use.
Meanwhile, customers' expectations keep growing.
For SMEs, adapting to such dynamic market conditions is challenging and demand planning limitations are a major reason why.
A lack of resources often prevents SMEs from investing in planning tools, but at times, they're not aware of some powerful technology that might be within their reach.
The tools can be a game-changer for SMEs, especially for demand planning. There is low awareness of the benefits and potential ROI within SME circles. In this post, we aim to change that so let's dive in!
The fourth industrial revolution (also called Industry 4.0) is underway. Industry 4.0 aims to digitize production and processes that create value. Supply Chain 4.0 is a big part of this movement.
The goal of Supply Chain 4.0 is to harness the power of big data analytics, automation, and end-to-end networks. The desired result is more agility and efficiency across the supply chain.Below are key Supply Chain 4.0 technologies and what they do:
What does demand planning with Supply Chain 4.0 tools look like?
Demand planning in Supply Chain 4.0 is very different from traditional methods. IoT sensors gather tons of data for a wide array of variables. Examples are weather and traffic updates and info from social media and news feeds. So the scope of forecasting widens.
Spreadsheets usually can't handle such large chunks of data. But modern analytics tools churn out accurate forecasts rapidly. And demand planners no longer resort to a handful of black-and-white decisions. Predictive analytics helps them map out several scenarios. They can then balance strategic priorities and risk minimization.
A cloud platform provides real-time data access to all stakeholders. External partners also get instant updates with internal ones. All this leads to more collaboration and fewer silos.
Finally, through AI and ML, self-learning algorithms come into play. As new data comes in, they keep fine-tuning forecasts. Due to this continuous refinement, forecast accuracy improves over time. The result is a quicker assessment of customers' needs. This deep understanding leads to timely inventory adjustments.
Supply Chain 4.0 demand planning tools aren't just for the big fish
Many large firms are already using Supply Chain 4.0 technology.
But smaller firms are often hesitant because they assume the cost is too high. That's not the case, especially for demand planning tech.
The cost of an advanced demand planning tool like StockTrim can be as low as $99 per month. Users can test this machine learning-powered software with a 14-day free trial.
Next, we have IoT sensors.
Over the years, their prices have consistently fallen.
Leasing and pay-as-you-use options will continue making sensors even cheaper.
These options allow SMEs to test such equipment and see if they'd yield a high ROI.
A few tips to make the most of Supply Chain 4.0 demand planning
Using Supply Chain 4.0 tools isn't that simple.
A fair amount of preparation is necessary.
Do the following:
Demand planning is challenging, even with the best technology.
But opting for strong (and affordable) Supply Chain 4.0 tools can give you an edge over your competition.
The only question is: are you ready to take the leap?