Case Study: Improving demand supplies in logistics using AI powered Demand Forecasting

Customer is an Australian based home furnishing goods supplier. He has built an expanded network of distributors in many parts of the city of Brisbane. As there remains a surplus demand all through the peak season mostly in the festivity season, customer has to work round the clock. His logistics need to remain active all day and night long to keep the demand flow in operation. With more than 15 distributors in his network, he plans to improve his customer service with undisputed demand flow. He believes to bring in full capable digital transform solutions to his logistics services and exercise freedom in handling delivery operations freedom.

Challenge:

In the ever-increasing digital landscape, where Smartphones and social networking sites are determining the purchasing trends of the customers, the product life cycle is becoming short-spanned. As people share their views on social media sites, it directly connects those dots with the prospective buyers. But, more and more customers are looking for ways to find personalized services. To meet the demand flow, suppliers are working day and night and want their logistics to run efficiently. But, many a time, lack of knowledge regarding fluctuations in demand or demand forecasting can run you out of service. The same concern had our customer going insane. Why?

Although a rapid industrial digitization has been enabled, many industries and firms are reluctant to this technical shift. Our customer has been following the old and traditional method of demand forecasting logic using data collected from the product sales. The minimal rate of accuracy in this process turned their manual effort ineffective in case with fluctuation in demand or demand forecasting. This traditional data collecting method is not so effective in assessing forecasting predictions and useful in taking necessary actions to reduce customer churn prior to happening of the incident.

Customer has experienced a steep fall in supply orders over a couple of years with reduced efficiency and productivity, which drastically affected its profit earning.

Solutions

AI enabled applications to be added to the tools to predict and rightly assess demand forecast. SynergyLabs AI solutions collaborated with the customer to build an Artificial Intelligence Network to build a high profile demand forecasting platform to predict a range of parameters.

We combined historical data with the intuitive AI platform that also featured gradient boosting and neural networks to look for trends and patterns. Our demand forecasting platform is highly competent in tapping into data from different sources at the inventory and it outperformed their existing demand forecasting model. Since we worked on processing the existing data, it helped us deploy the system faster and facilitated its operation.

Upon its implementation, it allows the company for more flexibility in making the right prediction about the product’s availability. Even during the peak season, customer maintained a steady flow of products availability all across its distribution centers with the help of AI powered application that sends reports about the work orders. Besides, it also efficiently alerts on weather situations so as to enable you to leverage the working hours to the fullest.

Results:

The application of the AI powered forecasting tool helped predict better assessment of stock available and make pace with the products being utilized in the proper manner. As a result, it made the perfect use of labor time and reduced work time by labors. Overall, it improved business efficiency and productivity and cost-savings.