Low Touch, High Impact Forecasting
Demand forecasting has always been key for supply chain planning, but things are changing fast.
With smarter forecasting tools and better access to demand data, companies are seeing huge jumps in accuracy—sometimes even better than human planners. Plus, there’s a growing need for more detailed forecasts, like daily demand for individual stores, which means planners have to juggle way more data than before.
As a result, many businesses are moving towards “touchless planning,” where automation handles most decisions. This lets planners focus on strategy instead of getting bogged down in data crunching.
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How does it work?
With touchless planning, planners are involved in fewer decisions, freeing them up to focus on strategic tasks. This shift streamlines processes, cuts costs, boosts efficiency, and improves customer satisfaction.
However, planners must trust the system and avoid unnecessary interventions that could harm accuracy. They should focus on areas where their input is crucial, like local events or market insights.
Building trust in touchless planning involves understanding how to best use the system and knowing when human input is valuable.
In the early days of retail, merchandise and assortment planning were done on a much smaller scale, particularly by “mom-and-pop” stores that dominated city centers. These small, family-owned shops catered to their local communities, and their inventory was often a reflection of their intimate understanding of customer preferences. Shop owners relied on personal relationships with customers to predict demand and make buying decisions. Without the aid of modern technology, they used instinct and years of experience to determine what products to stock and when to replenish.
How Small Businesses can Leverage AI for with Shelf Planner
While large online retailers were the first to embrace these technologies, with Shelf Planner AI-driven assortment planning is now accessible to small businesses as well.
Touchless planning handles unexpected changes in demand by using artificial intelligence and machine learning to analyze data and make quick recommendations. It automates routine tasks, allowing planners to focus on exceptions and more complex scenarios.
Our engine can detect changes, such as shifts in consumer behavior or external factors, and adjust forecasts accordingly.
This approach enhances operational efficiency by providing real-time insights and enabling proactive decision-making
Small business owners can benefit from touchless forecasting tools in several ways:
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Enhanced Accuracy:
Advanced AI engines improve forecast accuracy by analyzing complex data sets and identifying patterns, reducing human errors and biases
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Efficiency and Time Savings:
Automating routine forecasting tasks allows business owners to focus on strategic activities, such as scenario planning and cross-functional collaboration
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Real-Time Adaptability:
These tools offer real-time insights and adjustments, helping businesses quickly respond to changing market conditions and customer demands
Conclusion
The potential for touchless planning within companies is vast, providing significant benefits such as improved forecast accuracy through advanced AI engines and increased planner efficiency by minimizing unnecessary interventions and overrides. However, planners must adapt to this new process, which emphasizes input while reducing manual output adjustments at critical moments. In touchless planning, it’s essential for planners to trust the system to make decisions on their behalf.
This requires that business owners embrace some loss of direct control and decision making power as part of a more efficient and accurate data driven buying process.
With this in mind, it’s essential to establish a clear vision for the future roles of planners. This involves shifting from routine overriding to more valuable activities, such as scenario planning and collaborating with other functions like marketing and commercial teams.
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