Multiple AI tools are changing the game for CPG companies
“Optimization.” It’s a term that means so much but, simultaneously, has lost some of its meaning in recent years due to its overuse in the tech industry. It has almost become an industry cliché in a supply chain sector that is still far from optimizing its flows and processes. It is essential to reignite the term and find its true meaning relative to the most advanced solutions. Supply chain companies need to leverage the best AI tools – specialized and generative – for each stage of the planning process to achieve the optimal result.

Specialized AI includes:Machine Learning. To generate an accurate demand forecast, a system must be able to process an enormous amount of data on the wide range of variables that can potentially impact demand. Machine learning not only increases the accuracy of demand forecasts but also automates large amounts of planner work, processing millions of forecast calculations within a minute and considering more variables than ever possible.

Mathematical Optimization. Also known as linear programming, mathematical optimization is a very powerful technique that merges the impacts and capacity of all phases in a supply chain, from manufacturing to distribution, through fulfillment channels, and across the last mile to the consumer. This complete connectivity and merged data is the only way to achieve proper supply chain optimization, enabling planning based on complete end-to-end reality.