The article also emphasizes that planning isn't a one-size-fits-all approach, with inventory availability and consumer demand varying by region, category, brand, and product. Businesses are encouraged to adopt an outside-in mindset, incorporating external market insights into their planning process. The use of technology platforms that leverage AI/ML can help in creating more granular, robust demand forecasts and in allocating products to meet demand.
Key takeaways:
- Companies are shifting from traditional historical data to external market drivers and AI for more accurate demand forecasting and inventory fulfillment strategies.
- The "outside-in" approach in supply chain planning focuses on market demand and customer needs, adaptability to change, data-driven insights, collaboration across the supply chain, technology integration, and enhanced responsiveness.
- Inventory management should not be a generalized approach. It should be tailored to understand the factors influencing demand and how it can vary by region, category, brand, and product.
- Companies should adopt an outside-in mindset to incorporate market insights into the planning process across the business and supply chain, which can help mitigate risks and assess new opportunities.