Demand Intelligence Module (DIM)
How do you detect and hedge against bias and forecast timing error in your supply chain?
The answer is the Demand Intelligence Module (DIM) from SmartOps. The Demand Intelligence Module embeds sophisticated demand analytics into your inventory planning, integrating valuable new insights into your decision making process like never before. Analytics include:
- Demand classifications
- Data filtering
- Outlier detection
- Bias estimation
- Bias-adjusted forecast error
So with SmartOps Demand Intelligence Module you can:
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Represent true forecast error based on real demand data. Increase the accuracy of your forecast error by separating common forecast error corruptors such as forecast bias, timing variability of intermittent sales or shipments, data outliers.
- Update forecasts and hedge against bias. By adjusting forecasts in your source system before you optimize your inventory targets, then reload them for the correct inventory requirements calculations, you can correct for forecast bias.
- Reduce safety stock investments. By adjusting safety stock to reflect your extra inventory from over-forecasting, you can reduce your overstock investment.
- Model the timing accuracy of your forecasts and improve fill rates. Analyze the impact of backward and forward consumption settings in your ERP systems. Account for forecast timing uncertainty, and you’ll ensure your inventory is filled more efficiently.