How AI is Revolutionizing Demand Planning
LEAFIO treats Inventory Optimization as a financial-efficiency system rather than merely a forecasting tool for planners.
It tracks how forecasts affect sales plan execution, overstocks, lost sales, inventory turnover, and availability.
Even 95% forecasting accuracy can still produce poor execution.
Drawing on more than 100 implementations, the company argues that teams must examine how forecasts are used and what financial outcomes they generate.
[Music] We are considering the project for the implementation of LEO inventory optimization solution not just like a tool for forecasting or providing some figures for planners but uh we rather consider it as a tool that helps to maintain better results in terms of financial efficiency and we are financially responsible and interested in the improvements of results. We are ROI oriented company. That is why except of the forecasting accuracy and measuring the forecasting accuracy which obviously is an important part inside of the solution. We are more convinced with the sales plan with effect. So whether we are meeting the plan or not, the level of the overstocks and loss sales, inventory turnover and the percentage of availability. Usually we are keeping track of these indicators and the influence of the forecast on these indicators. But from our experience we see even if we have very high level of
the forecasting accuracy let's assume that it will be like something 95% of the forecasting accuracy on some level we still can have bad results in terms of u execution let's say and uh as uh we understand that as we have implemented more than 100 projects we understand that we need to dive deeper into the processes uh not only to stop with the forecasting accuracy but also to understand how this forecast is utilized and what outcomes, financial results we are gaining with the usage of the solution. Curious to learn more about how these insights can be leveraged for your organization's success? Make sure to watch the entire webinar where we break down these concepts in detail. [Music]