Top 5 Benefits of Using Artificial Intelligence for Demand Forecasting
/In the challenging world of food and beverage manufacturing, it’s Artificial Intelligence (AI) that can bring the most clarity and precision to business decisions.
Let’s take a look at the top 5 most important benefits of using AI in demand forecasting.
1. It Reduces Costs and Increases Profitability
If you’re running a food and beverage enterprise, you have to stay focused on your running costs and your profitability. AI powered demand forecasting is the strongest method by which to grow revenue and increase profit. The increased accuracy that AI demand forecasts provide results in precise future replenishment quantity predictions. This data reduces missed sales opportunities through stock outs, and also reduces waste, which both directly impact overall profit.
2. It Reduces Errors
One of the greatest benefits of AI powered demand forecasting is the impact in has on reducing errors in supply chain networks. Demand forecasts are a vital component of supply chain management, therefore it’s important that these forecasts are as accurate and precise as they can be. AI demand forecasting software saves users time and effort by automating the suitable forecasting methodologies. And food and beverage manufacturers who adopt demand forecasting software reduce errors by 30 to 50% overall, according to Mckinsey Digital.
3. It Brings Clarity
Running a food and beverage business is challenging and often involves a lot of guess-work when it comes to business decisions. Any clarity and precision when it comes to running a business is welcomed. The best AI powered demand forecasting models identify fluctuations in demand, and initiate and automate effective measures, which ensure demand is always met and supply chain inefficiencies are eradicated.
4. It Improves Customer Service
It’s interesting that using AI for demand forecasting also has a positive impact on customer service and business reputation. Ensuring product availability is an important component of customer loyalty and appreciation. When consumers want your product, and they feel they can always get it, they will keep coming back for more.
5. You Can Respond Quickly
Without demand forecasting software we cannot truly prepare for the future, since we never know what’s around the corner. Demand for certain products and ingredients can change in mere moments, but it’s AI that can deliver the perfectly accurate analysis of the casual relationship between any external factors and events and the demand for a specific product. And when combined with human expertise and a clarity of vision, the very best business decisions can be formulated and enacted.
Powered by AI and machine learning, Cashmere Systems deliver SaaS demand forecasting and traceability software solutions to food and beverage companies across the world. Request a demo today to find out how we can help your business grow!
