Retailers are already facing their next inventory crisis—too much stock on hand, with too few buyers.
Video: Consumption Sensing – Next Generation Forecasting
on May 5, 2020
| By Antuit Insights
|
Demand Forecasting,
Demand Analytics,
Video,
Consumer Products,
Artificial Intelligence
The panic buying and consumer demand shifts ravaged demand forecasts, leaving most CPG companies reverting to manual intervention to fix their stock issues. While unavoidable in the beginning, this event highlights the shortcomings of many forecasting methodologies: a basic assumption that demand is steady and slowly changes. Consumption sensing takes a new approach by creating a "conversation with the consumer" to predict consumer demand and identify shifts for near, mid, and long term forecasting and planning.
There is an increasing belief that machines can replace human activities. With supply chain becoming more complex, humans would need to make hundreds of thousands of decisions to stay competitive. Does this mean companies need AI and No Touch Demand Planning?
CPG companies are increasingly harnessing growing volumes of consumer data through online marketing and direct-to-consumer sales platforms. These companies can enhance their trade promotion activities through artificial intelligence and machine learning, but they must collaborate with retailers to do so. Together, the two can better identify ineffective promotions, forecast more accurately and optimize promotions to generate an optimal sales fit.
Digital savvy consumers demand personalization across multiple touch points. Companies that fail to engage risk losing consumers or even worse falling behind the competition. Gone are the days of mass marketing, mass messaging, mass distribution of the same message to everyone.