The Role of Machine Learning in Modern Demand Planning

Machine learning is transforming how businesses forecast demand. Here's what you need to know about AI-powered planning.

Traditional statistical forecasting has served supply chain planners well for decades. But as supply chains grow more complex and consumer behaviour becomes harder to predict, machine learning offers a step change in forecasting capability.

Machine learning algorithms can analyse vast amounts of historical data to identify patterns that human planners or traditional statistical models might miss. They can account for seasonality, promotions, weather patterns, economic indicators, and more.

One of the key advantages of ML-powered forecasting is that models improve over time. As more data is collected and outcomes are observed, the algorithms refine their predictions, continuously improving accuracy.

sofco's planning suite includes built-in machine learning capabilities that analyse historical sales, forecast parameters, and user adjustments to give insights on how to improve future forecasts. The system automatically recommends the best forecasting algorithm for each SKU.