AI Driven Demand Forecasting and Capacity Planning Workflow

AI-Powered Demand Forecasting and Capacity Planning

1. Data Collection

1.1 Identify Data Sources

Gather historical data from various sources including:

• Transportation Management Systems (TMS)
• Warehouse Management Systems (WMS)
• Customer Relationship Management (CRM) systems

1.2 Integrate External Data

Incorporate external factors such as:

• Market trends
• Seasonal fluctuations
• Economic indicators

2. Data Processing and Cleaning

2.1 Data Normalization

Standardize data formats to ensure consistency across datasets.

2.2 Data Cleansing

Remove duplicates and correct inaccuracies to enhance data quality.

3. AI Model Development

3.1 Selecting AI Tools

Utilize AI-driven tools such as:

• IBM Watson Studio – for machine learning model development
• Google Cloud AI – for predictive analytics

3.2 Model Training

Train models using historical data to identify patterns and trends.

4. Demand Forecasting

4.1 Implement Forecasting Algorithms

Deploy algorithms such as:

• Time Series Analysis
• Regression Analysis

4.2 Generate Forecast Reports

Produce actionable reports detailing expected demand over specified periods.

5. Capacity Planning

5.1 Assess Current Capacity

Evaluate existing resources including:

• Transportation fleet
• Warehouse space

5.2 Optimize Resource Allocation

Utilize tools like:

• Oracle Cloud Supply Chain Management – for resource optimization
• SAP Integrated Business Planning – for aligning supply with forecasted demand

6. Continuous Monitoring and Adjustment

6.1 Implement Real-Time Analytics

Use AI-driven dashboards to monitor demand and capacity in real-time.

6.2 Adjust Strategies Based on Insights

Regularly update forecasting models and resource plans based on new data and trends.

7. Stakeholder Communication

7.1 Share Insights with Teams

Disseminate forecast and capacity reports to relevant stakeholders.

7.2 Gather Feedback for Improvement

Solicit input from teams to refine processes and tools continuously.