Consumption-Based Forecasting and Planning

CHAPTER 5AI/Machine Learning Is Disrupting Demand Forecasting

Artificial intelligence (AI) and machine learning (ML) are the new buzzwords being touted as a vital business capability to digital transformation. AI/machine learning algorithms are being embedded into every key business function throughout the enterprise, providing forward-thinking companies with unapparelled insight, control, and performance. Machine learning is providing consumer goods companies with unprecedented analytic firepower to enhance technology by raising the bar in such business functions as demand planning and supply chain execution. The interesting aspect is how leading consumer goods companies are developing these game-changing enhancements to their corporate technology stack.

It would be difficult to find a technology executive who does not completely believe in the power of AI/machine learning. Technology supported by ML is becoming a dynamic tool and will only become more vital in the coming years as it is refined, and use cases become more abundant. Having clear and tangible benefits does not necessarily mean a technology solution has organizational support. Fortunately, that is not the case with AI/machine learning. In fact, according to a recent 2020 Consumer Goods Technology (CGT) targeted research report,¹ 70% of consumer goods company executives are committed to leveraging AI/machine learning for technology business designs, execution, and implementing for field operations.²

In that same ...