AI-Powered Forecasting for Sales and Operations Processes in the Manufacturing Industry
SCM Best develops and distributes an ERP extension, WISESTEIN SCM®, that powers over 20 Sales and Operations Planning (S&OP) processes with its demand forecasting capabilities. They wanted to move beyond traditional statistical forecasting to unlock the full potential of market intelligence and unstructured data. Vuono Group stepped in to bridge this gap, integrating an AI-Powered Demand Forecasting Assistant that significantly enhances forecasting accuracy and empowers proactive decision-making.
The Challenge
Like all pre-AI IT systems, the ERP extension is limited to analysing statistical and structured ERP data. This meant that valuable contextual insights from external, unstructured data sources – such as news, market reports, and social media trends – remained untapped. The challenge was to integrate these crucial external factors to improve forecasting accuracy and reliability, without overwhelming the planning team.
The Solution
To develop the forecasting accuracy and reliability of the ERP extension, we integrated an AI-Powered Demand Forecasting Assistant into it. This innovative AI Assistant revolutionises the forecasting process by:
Combining Data Sources: This process begins by aggregating traditional statistical forecasts to the desired level of granularity, providing a solid quantitative baseline.
Leveraging Unstructured Data: The AI Assistant then performs "deep searches" and employs "chain-of-thought" reasoning to analyse vast amounts of unstructured external data (e.g., news, market reports, social media trends, competitor activities, macroeconomic indicators).
Generating Qualitative Insights: By processing this unstructured data, the AI Assistant identifies potential impacts on demand that are not visible from internal data alone. It then proposes qualitative, analysis-based percentage corrections to the baseline statistical forecast.
Visualising and Refining: The system visualises demand trends, forecast error trends, and the proposed AI-driven adjustments, allowing planners to review insights and their underlying reasoning.
Streamlined Approval: An intuitive "Approve proposed forecast changes" function allows planners to easily incorporate the AI Assistant's suggested percentage changes into the final forecast values, effectively harnessing the combined power of structured and unstructured data.
The AI-Powered Demand Forecasting Assistant empowers the forecasting team to move beyond purely quantitative methods, enriching their understanding of market dynamics and allowing for more proactive and informed decision-making.
Key Benefits
The integration of the AI-Powered Demand Forecasting Assistant delivered significant benefits for SCM Best and its clients:
Enhanced Forecast Accuracy: By incorporating insights from unstructured external data, the AI Assistant helps identify and quantify factors previously missed, leading to more precise demand predictions.
Improved Risk Mitigation: Early identification of market shifts, potential disruptions, or emerging trends – whether positive or negative – enables proactive plan adjustments, thereby reducing risk.
Increased Efficiency: The AI Assistant automates the time-consuming process of gathering and analysing external information, allowing the planning team to focus on strategic decision-making.
Deeper Market Understanding: The "deep search" and "chain-of-thought" capabilities provide a more holistic view of the factors influencing demand.
Data-Driven Qualitative Adjustments: The AI Assistant proposes data-backed correction percentages, replacing gut feel and manual qualitative adjustments.
Seamless Integration: The AI-Powered Demand Forecasting Assistant seamlessly integrates with the existing Wisestein ERP extension, ensuring a smooth user experience and leveraging current S&OP and procurement workflows.
“The AI Demand Forecasting Assistant has transformed our S&OP process. We’re now able to tap into external market intelligence in a way that was not possible before, providing us with a much clearer picture of future demand and enabling us to make more confident and proactive decisions. The ability to see AI-suggested adjustments based on real-world events is a game-changer.”
About SCM Best
SCM Best Oy and the WISESTEIN SCM® solution family are Finnish experts in logistics and supply chain management. They have supported over 800 companies, including Kemppi, Genelec, and Varusteleka, to overcome challenges and improve their operations, while training thousands of professionals in supply chain best practices.