Good preparation is key to success in supply chain execution

Success in supply chain execution starts with effective forecasting and stock planning. That is one of the conclusions from the Control Towers & Order Management track during Supply Chain Media’s first SCE Day. Remira, Slimstock, SPS Commerce and MintIQ provided an insight into the capabilities of their systems, in which AI is playing an increasingly important role. Some companies could certainly benefit from this. ‘‘The average order management system usually consists of the ERP system, an Excel file maintained by two colleagues, and the knowledge and experience of Teresa, the colleague who knows everything.’’

Remira’s story doesn’t begin with control towers or order management systems (OMS), but one step earlier: with market demand. ‘‘Better order fulfilment starts with better demand forecasting. How much we expect to sell determines how much stock we hold, when we replenish that stock and, ultimately, what we order from suppliers,’’ explains Johan van Hemert, Benelux country manager at Remira. ‘‘We may not be able to eliminate uncertainty in the supply chain, but we can make that uncertainty explicit and learn to understand it better.’’

During his pitch, Van Hemert explains why forecasting is so complex and how AI can contribute to a solution. ‘‘Once the forecast has been put into practice, every error in it has an impact on operations. If the forecast is too high, the drain on working capital is too great, storage costs rise and the risk of dead stock increases. If the forecast is too low, it leads to stock-outs, lost revenue and, above all, a lot of firefighting.’’

This story was originally published by Supply Chain Movement. Read the full story at Supply Chain Movement →