5 Things Every CSCO Should Know About Generative AI

August 4, 2023

As a Chief Supply Chain Officer (CSCO) of a consumer goods company, you are no stranger to the constant pursuit of productivity, automation, and actionable insights. In this dynamic and challenging global marketplace, staying ahead of the curve is essential for driving faster and better decision-making processes. Excitement abounds as ground-breaking technology, generative AI, emerges as a game-changer for supply chain planning.

As a digital supply chain expert at Firstshift, an innovative technology company, I am equipping you with five essential insights on leveraging generative AI to accelerate and elevate your supply chain planning initiatives.

Generative AI, with its unique ability to efficiently generate new insights from both structured and unstructured data, has the potential to transform your supply chain strategy. As a seasoned expert in supply chain planning technology, cloud solutions and AI, including generative AI, Firstshift holds the key to unlocking unprecedented efficiencies and gaining valuable AI-driven insights.

As a CSCO, your role in catalyzing your company’s value proposition with generative AI is vital. And understanding its capabilities and limitations will be paramount in positioning your organization for success. So, let’s explore the five things every CSCO should know about generative AI. Armed with this knowledge, we’ll empower you to take your supply chain planning to the next level with the innovative power of generative AI.

1. Democratization of Supply Chain Insights: The natural language interpretation and generation capabilities of generative AI can make supply chain insights accessible to more participants within and outside (partners) the enterprise. Processes like Sales and Operations Planning (S&OP) will benefit greatly from generative AI driven insights and the ability to explore multiple business scenarios.

2. Unleashing Unstructured Data: Generative AI’s ability to process unstructured data (documents, emails, etc.) both internal to the enterprise and external unlocks a treasure trove of insights, enabling you to extract value from previously untapped sources. The additional insights can be extremely valuable in areas like supply chain risk management and demand planning.

3. The power of Domain Specific LLMs: Foundational models like GPT-4 (short for “generative pre-trained transformer”), trained using the vast ocean of information available on the internet have shown great promise in use cases associated with content generation. Domain specific LLMs (Large Language Models) that are built by pre-training or fine tuning LLMs with domain specific content (rules, data models etc.) will certainly have a revolutionary impact on enterprise business processes including supply chain processes.

4. Generative AI Enabled Automation: Intelligent agents enabled by generative AI are starting to show promise in automating complex sequences of repetitive tasks. Experiments in this area like Auto-GPT are quickly evolving into more robust and enterprise ready agents. Supply chain processes that rely on making decisions and performing actions based on insights generated from disparate information are prime use cases for these agents.

5. Embrace the Future: View the exploration of generative AI as a mandate rather than an option. It can transform supply chain planning by enhancing data utilization, evaluating diverse business scenarios, accelerating insights, and optimizing key supply chain goals. As CSCOs, you have a crucial role in leading your organization into the future. Embrace generative AI’s transformative potential and position your company to excel in an ever-evolving supply chain landscape.

With generative AI poised to redefine supply chain processes including supply chain planning, CSCOs have an unprecedented opportunity to drive productivity, automation, and strategic insights. Armed with these five crucial insights, you are well-equipped to embrace the possibilities of generative AI and elevate your organization’s supply chain planning to new heights of success. By capitalizing on this innovative technology, you can stay ahead of the competition and revolutionize your supply chain for the better. Embrace the future with generative AI and pave the way for a more efficient and effective supply chain ecosystem.

Ready to make the smart shift?

Our innovative AI-powered platform fuels data-driven recommendations and automation to optimize your demand planning, drive customer satisfaction, and boost your bottom line. Schedule a demo to see the power of generative AI to optimize your supply chain strategy.

About Firstshift

Firstshift’s innovative supply chain planning platform leverages artificial intelligence to automate tedious tasks and provide actionable insights, that free up your valuable resources, allowing you to scale without compromising quality, overloading your team, or incurring unnecessary risks. Experience greater confidence, faster decision-making that comes from new insights, and drive your business forward. The AI-powered supply chain planning platform transforms company operations from the first shift today and into the possibilities of tomorrow. Make the smart shift.

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August 2, 2024

Elevate Your Demand Planning with AI-Powered Precision

Effective demand planning is crucial for meeting customer expectations and driving profitability. Companies need to be agile, responsive, and precise in their planning to stay ahead of the competition. Firstshift provides AI-powered supply chain management solutions that help businesses plan with confidence using generative AI and machine learning. Our advanced demand planning platform offers a comprehensive approach by allowing companies to plan using different planning methods to optimize their efforts.

Hierarchical and Attribute-Based Planning

One of the key features of our demand planning solution is its ability to generate forecasts and plans at various levels of granularity. Whether you need to plan at the product, customer, or location hierarchy, our platform ensures that your planning aligns seamlessly with real-time execution. This hierarchical and attribute-based planning approach allows you to:

  • Improve Accuracy: By breaking down your planning process into finer levels, you can achieve greater precision and reduce the risk of errors.
  • Enhance Flexibility: Tailor your plans to specific segments and respond more effectively to changes in demand.
  • Optimize Resources: Allocate resources more efficiently by understanding the unique needs of each segment.

With hierarchical and attribute-based planning, you can achieve a higher level of detail and accuracy in your demand forecasts, ultimately leading to better decision-making and improved business outcomes.

Plan Scenarios with Ease

Navigating business uncertainties requires the ability to generate and evaluate multiple planning scenarios quickly and efficiently. Our AI-powered platform empowers you to create detailed plans for various business scenarios and assess their financial impact with ease. This capability is essential for:

  • Risk Management: Identify potential risks and develop contingency plans to mitigate them.
  • Strategic Decision-Making: Evaluate the financial implications of different planning assumptions to make informed decisions.
  • Agility: Adapt to market changes and emerging trends by having multiple scenarios ready to deploy.

Our solution helps you stay prepared for any market condition by enabling you to plan for different scenarios, ensuring that your business remains resilient and competitive.

Harness External Signals

Incorporating external data into your demand planning process is vital for staying ahead of market trends and optimizing your forecasts. Our platform seamlessly integrates external signals such as market trends, Point of Sale (POS) data, and syndicated data alongside your enterprise data. This comprehensive approach allows you to:

  • Enhance Forecast Accuracy: Improve the reliability of your forecasts by considering a broader range of data sources.
  • Gain Market Insights: Stay informed about industry trends and consumer behavior to make proactive decisions.
  • Optimize Inventory: Balance supply and demand more effectively by anticipating changes in market conditions.

Harnessing external signals ensures that your demand planning is not only based on internal data but also aligned with the broader market landscape, providing you with a competitive edge.

Elevate Your Demand Planning with Firstshift

At Firstshift, we understand the importance of effective demand planning in achieving business success. Our AI-powered supply chain management solutions are designed to help you meet customer expectations, increase your bottom line, and drive growth. By leveraging generative AI and machine learning, we provide a robust platform that enhances your planning capabilities and ensures that your business is always prepared for the future.

Ready to transform your demand planning? Schedule a Demo today and discover how our advanced solution can elevate your business.

News
July 2, 2024

Firstshift Makes Hatcher+ Top 100 List

2 July 2024, Los Altos, CA: Firstshift is proud to announce they have earned a place among the Hatcher+ Top 100 Global Startups for June 2024 - the world’s first-ranked list of startups based on an unbiased, AI-powered, global scoring system for startups. 

“We are thrilled to be honored as one of the Top 100 Global Startups by the team at Hatcher+,” says Firstshift CEO, Hari Menon. “Our team has created an AI-powered supply chain management platform that leverages the latest technology in generative AI and machine learning. It is only fitting to have been selected by a similar approach using an AI-powered scoring system.” 

The Hatcher+ Top 100 scoring system uses a proprietary model based on data from over half a million startups and multiple investment rounds to evaluate startups. Each component of the model assesses a different aspect of a startup’s sector, technology fit, market position, and future potential, providing a numerical score between 400 and 900, with an average score around 650 indicating an average likelihood of success.  The system is language agnostic and specifically designed to reduce biases based on age, location, race, religion, and sector.

"Unlike traditional startup rankings, companies included in the Hatcher+ Top 100 undergo a thorough and independent evaluation process, reflected in their Hatcher+ Score, using a complex algorithm that we have tried to make as unbiased and relevant as possible,” says John Sharp, Managing Partner of Hatcher+. “It is our hope that this approach will help founders and their companies refine their strategic vision, grow awareness, and raise the capital they deserve."

The 100 winning startups were announced at midnight Singapore time on June 30, 2024, and their names have been published on the Hatcher+ website at https://hatcher.com/founders and on the Hatcher+ LinkedIn page.

For media enquiries, journalists should contact:

Hari Menon, CEO, Firstshift, hmenon@firstshift.ai 

 Hans Yong, Head of Marketing, Hatcher+, hans@hatcher.com

 

About Firstshift

Firstshift is an innovative provider of AI-powered supply chain planning software that offers advanced supply chain planning capabilities to companies in Consumer Goods and industrial verticals, including Food & Beverages, OTC Pharma, Apparel & Footwear, and others.  The company was founded by veteran supply chain software entrepreneurs and executives motivated by the strong belief that AI will play a transformative role in the supply chains of all enterprises. Firstshift’s cloud-native software platform leverages the latest in AI innovations, including deep learning and generative AI. For more information visit www.firstshift.ai

  

About Hatcher Plus Pte Ltd (“Hatcher+”) 

Hatcher+ is a leading venture capital firm specializing in the development of advanced software and AI-based data models to support fast fund creation, AI-powered deal analysis, and intelligent capital deployment. The Hatcher+ FAAST™ platform offers comprehensive solutions for fund administration, enabling efficient portfolio construction and real-time financial data visualization. FAAST™ Founder extends these capabilities to startups, providing tools such as AI-powered Executive Summary and Pitch Deck Analysis, a secure data room, cap table management, and investor CRM. These features ensure impactful and scalable investment strategies, empowering both investors and founders to achieve their business goals with confidence.

Insights
July 1, 2024

Better Demand Planning with AI-Powered Forecast Accuracy

The world of supply chain management is complex and challenging for many businesses. Accurate demand planning is paramount to success. One of the key elements in achieving this is better forecast accuracy. With the right strategies and technologies, businesses can optimize inventory levels, reduce costs, and meet customer demands more effectively. Let’s explore the importance of forecast accuracy in demand planning, the benefits it brings, and how to achieve it using advanced analytics and real-time data integration, with a special focus on AI and machine learning (ML) capabilities.

The Importance of Forecast Accuracy in Demand Planning

Forecast accuracy is the cornerstone of effective demand planning. It involves predicting future demand for products with a high degree of precision. When forecasts are accurate, businesses can ensure they have the right amount of inventory at the right time, minimizing stockouts and overstock situations. This not only improves customer satisfaction but also optimizes inventory carrying costs and enhances overall operational efficiency.

Benefits of Improved Forecast Accuracy

When you accurately forecast, your business flourishes for several reasons.

  • Optimized Inventory Levels: With accurate forecasts, businesses can maintain optimal inventory levels. This means having enough stock to meet demand without wasting capital on inventory.
  • Cost Reduction: Accurate forecasts help reduce various costs associated with excess inventory, such as storage, insurance, and obsolescence costs. It also minimizes the cost of stockouts, which can lead to lost sales and dissatisfied customers.
  • Enhanced Customer Satisfaction: Meeting customer demand consistently and promptly enhances customer satisfaction and loyalty. Accurate forecasting ensures that products are available when customers need them, improving their overall experience.
  • Efficient Supply Chain Operations: Improved forecast accuracy leads to more efficient supply chain operations. It enables better coordination with suppliers, reduces lead times, and improves production planning.
  • Better Financial Planning: Accurate forecasts provide a solid foundation for financial planning and budgeting. It allows businesses to allocate resources more effectively and make informed decisions.

Achieving High Forecast Accuracy with AI and ML

To achieve high forecast accuracy, businesses have traditionally relied on statistical forecasting techniques where a forecasting expert selects a particular algorithm based on his or her hypothesis around the demand pattern and tests out the hypothesis. An exhaustive trial and error approach is used to arrive at a decision to use a particular algorithm - an algorithm that produces the least error! This works reasonably well when you have a small number of SKUs and demand patterns for those SKUs don’t change significantly over time. However this approach is highly infeasible as the number of SKUs, Customers, Locations, etc. get larger and the demand pattern changes over time. What is needed is an “autonomous forecasting” capability!

Utilize AI-Powered forecasting algorithms and algorithm selection

A McKinsey study highlights that AI-driven demand planning solutions can significantly reduce forecasting errors by up to 50% and decrease lost sales by 65%​ (McKinsey & Company)​. Firstshift’s AI-powered forecasting automatically selects a “Best Fit” algorithm from a library of forecasting algorithms that include traditional statistical algorithms as well a large set of M/L methods like LSTM, XGBoost and N-Beats. 

Integrate Real-Time Data

Real-time data integration is crucial for accurate demand forecasting. By accessing the latest market trends, consumer behavior, and external factors, businesses can make more informed predictions. Real-time data also helps in adjusting forecasts dynamically in response to changing conditions. 

Incorporate External Data

External data such as economic indicators, weather forecasts, and market trends can significantly impact demand. By incorporating these external factors into forecasting models, businesses can enhance the accuracy of their predictions.

Continuously Monitor and Improve

Forecasting is not a one-time activity. Continuous monitoring and improvement are essential for maintaining high forecast accuracy. Regularly reviewing and updating forecasting models based on actual performance can help identify areas for improvement and refine predictions.

Collaborate Across Departments

Effective demand planning requires collaboration across various departments such as sales, marketing, and supply chain. Sharing information and aligning strategies can improve forecast accuracy and ensure that all stakeholders are on the same page.

Firsthift’s Demand Planning Solution

Improving forecast accuracy is crucial for effective demand planning. Firstshift’s supply chain management platform improves forecast accuracy by utilizing advanced analytics, integrating real-time data, and adopting a collaborative approach. 

Investing in AI-powered technologies and continuously monitoring and refining forecasting models are key to staying ahead in the market. By focusing on forecast accuracy, businesses can navigate the complexities of demand planning and ensure a resilient and efficient supply chain.

Our platform helps businesses reap the benefits of optimized inventory levels, cost reduction, and enhanced customer satisfaction. By implementing these strategies and focusing on AI-powered forecast accuracy, businesses can meet customer expectations and drive growth and profitability. Embrace the power of accurate demand forecasting and take your supply chain management to the next level.

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