Why Now is the Time for Leaders to Invest in Demand Sensing Software

November 10, 2023

In today’s rapidly changing business landscape, being a forward-thinking leader in the supply chain industry is more critical than ever. The role of the Chief Supply Chain Officer, Vice President of Supply Chain, or other supply chain leaders has never been more complex, demanding, and pivotal to driving company performance. We understand that your schedules are tight, and your plates are full, yet your challenges persist. So, let’s talk about the advantages of acting now on demand sensing software and how you can empower your supply chain planning team, especially those responsible for demand planning and channel-specific performance.

Why Demand Sensing Software Matters to Supply Chain Leaders

Supply chain leaders understand the immense challenges that the industry faces. The global disruption caused by the COVID-19 pandemic altered the way businesses operate. Historical data and conventional forecasting models can no longer guarantee accurate demand predictions. In addition, consumer behavior has shifted significantly, with a 40% increase in online e-commerce in just one year.

The Benefits of Acting Now

For supply chain leaders, the benefits of investing in Demand Sensing are substantial:

1. Capturing More Revenue: With accurate demand sensing, businesses can meet customer needs with precision, resulting in increased sales and revenue growth. This is not just about profitability; it’s about outperforming competitors in an ever-changing market.

2. Accelerating Inventory Turns: Demand Sensing optimizes inventory levels, reducing carrying costs, and minimizing stockouts. According to IBF, this can lead to a 12% reduction in inventory for every 15% improvement in forecast accuracy. The financial implications are substantial, contributing to a healthier balance sheet.

3. Enhanced Customer Service: Meeting customer demand consistently leads to improved customer satisfaction and loyalty. This positively impacts brand reputation and customer retention. It’s about ensuring your business remains a trusted choice for consumers, leading to a loyal customer base.

4. Boosting Profitability: By reducing carrying costs, optimizing inventory, and increasing sales, Demand Sensing enhances overall profitability. IBF research suggests a 15% improvement in forecast accuracy can deliver a 3% or higher pre-tax net profit improvement. This is a direct impact on the bottom line, enhancing financial health.

5. Capturing incremental revenue: By accurately predicting short term demand, CPG companies cn capture incremental revenue from their most profitable channels.

Results Achieved by Firstshift Customers

But don’t just take our word for it. Our customers have experienced remarkable results:

Increase Forecast Accuracy by 30%: Firstshift.ai customers have significantly improved their forecast accuracy, allowing for more precise planning and resource allocation.
Increase Sell-Through During Promotions: Leveraging Demand Sensing, our customers have seen increased sell-through rates during promotional periods, maximizing the return on their marketing investments.
Capture Additional Revenue by as much as 20%: Businesses using our platform have reported capturing additional revenues, a testament to the power of accurate demand sensing.
Improve Order Fulfillment and On-Time Delivery (OTD) to Amazon DCs: Firstshift.ai has enabled customers to enhance order fulfillment and consistently meet on-time delivery requirements to Amazon Distribution Centers, ensuring a strong partnership with this e-commerce giant.
Decrease Chargebacks by 40%: By reducing inaccuracies and streamlining operations, our customers have seen a substantial reduction in chargebacks, positively impacting their bottom line.

How Firstshift Makes It Easier

Investing in Demand Sensing has never been easier than with Firstshift.ai. Our easy-to-use AI-driven platform is designed to provide supply chain leaders with the tools and insights needed to navigate the complexities of today’s market. We understand the unique challenges you face, and we’re here to support your journey.

Ready to Future-Proof Your Supply Chain?

If you’re a supply chain leader looking to make better decisions, gain greater leverage from your talented team, and quickly address demand variability in a dynamic market, now is the time to make that investment in Demand Sensing. Schedule a call with the experts at Firstshift and let us guide you through the transformative journey of AI-powered Demand Sensing. The future of supply chain management is within your reach, and it’s more critical now than ever.

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March 18, 2025

Firstshift Launches Pluto, an AI-powered copilot for Supply Chain Planning Excellence

Los Altos, California – March 18, 2025 – Firstshift, a leading provider of AI-powered supply chain planning software, today announced the launch of Pluto, a Generative AI-powered planning copilot that assists planners with their decisions and tasks.

With options to leverage natural language query capabilities and an intuitive query builder, Pluto empowers supply chain professionals to gain critical insights faster, streamline decision-making, and optimize operations with unprecedented ease.

“Pluto is a game-changer for supply chain professionals,” said Hari Menon, CEO and Co-founder of Firstshift. “By making supply chain insights more accessible, actionable and accurate, Pluto allows planners to plan with confidence. With AI-powered insights at their fingertips, decision-makers can navigate supply chain complexities with greater speed and precision. Pluto is the first in the line of a series of AI-powered planning copilots and agents in our product roadmap.”

The flexibility of Pluto to operate in a natural language mode or the query builder mode makes it easy for planners to ask questions about their supply chain and get answers instantaneously. For complex and detailed analysis, Pluto’s query builder mode allows users to create complex queries effortlessly without requiring deep technical knowledge.

Supply chain leaders in enterprises are constantly challenged having to deal with shifting consumer demand, supply disruptions, and increasing operational complexity. Planners in their organization have to be agile to adjust plans, evaluate scenarios and make decisions based on insights derived from large volumes of data. Pluto changes the game by offering an AI assistant that compliments or extends a company’s supply chain planning team’s capabilities without adding staff or expertise. This is especially important as access to experienced talent and professionals with supply chain planning experience becomes increasingly competitive and difficult.

Pluto is available as part of Firstshift’s AI-powered demand and supply planning platform and solutions. Schedule a demo to see it in action and learn more about our platform’s solutions.

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Firstshift is an innovative provider of AI-Powered supply chain planning solutions for large and medium-size enterprises. Firstshift's customer base includes leading brands in CPG, Food & Beverage, Industrial products and Apparel & Fashion industries. For more information visit www.firstshift.ai.

Insights

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January 28, 2025

Unlocking Growth Opportunities with AI-Powered Demand Forecasting in the Food & Beverage Industry

From unpredictable consumer behaviors to supply chain disruptions, the challenges of demand planning are a delicate balancing act. Companies must adapt quickly to meet demand without sacrificing efficiency or profitability. AI-powered demand forecasting offers a game-changing solution, empowering F&B companies to make smarter decisions, reduce costs, and unlock growth opportunities.

Why Traditional Forecasting Falls Short

Conventional forecasting methods rely on few statistical algorithms applied on historical sales and shipment data and don’t account for :

Intermittent demand spikes
Volatile demand patterns
Unforeseen external factors, like weather and trends

These inaccuracies lead to either excess inventory of lost revenue.

How AI-Powered Demand Forecasting Makes a Difference

Leveraging machine learning and external signals, AI-driven demand planning dynamically predicts demand across product categories, markets, and supply chains. Key advantages include:

✅ Increased Accuracy: Attribute-based planning adjusts forecasts based on real-time changes like promotions, market trends, and consumer behavior.

✅ Scenario Planning: Simulate outcomes with ease, compare “what-if” scenarios, and adjust plans to avoid disruptions.

✅ Reduced Waste: Accurate forecasting means optimized production—no more overstocking or spoiled inventory.

✅ Growth Insights: AI uncovers demand signals you might miss, like external trends or regional opportunities, to fuel revenue growth.

Real Results for F&B Companies

Companies adopting AI-powered solutions see results like:

Up to 30% improvement in forecast accuracy
Reduced inventory costs by 10-20%
Faster response to supply chain shifts

By unlocking demand insights and improving agility, F&B businesses can turn challenges into opportunities.

Ready to Unlock Growth?

Don’t let inaccurate forecasts limit your growth. Explore how AI-powered demand forecasting can help you stay ahead of demand, reduce costs, and grow your business. Schedule a demo today.

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Insights

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January 16, 2025

The Power of AI in Sales & Operations Planning for the Food & Beverage Industry

The food and beverage (F&B) industry is one of the most dynamic and challenging sectors in the global market. With fluctuating consumer preferences, stringent regulations, and the pressure to minimize waste, achieving operational efficiency is no small feat. Sales & Operations Planning (S&OP) plays a pivotal role in navigating these complexities, helping businesses align their demand forecasts with operational capabilities.

Navigating Complexity with Precision
Traditional S&OP processes often fall short of delivering the agility and precision required in today’s market. This is where AI-powered supply chain planning solutions step in, transforming how F&B companies strategize, plan, and execute their operations. By integrating advanced analytics, predictive capabilities, and real-time insights, AI is reshaping S&OP into a powerful growth engine.

Why Does S&OP Matter in F&B?
At its core, S&OP is a structured process that ensures sales forecasts, production plans, and business objectives are in harmony. For F&B companies, this alignment is crucial to navigating the sector's unique challenges. Imagine trying to forecast demand for seasonal products like ice cream or holiday beverages while accounting for production capacity, supplier timelines, and regulatory compliance. The stakes are high—too much inventory leads to waste, while too little results in lost sales and customer dissatisfaction.

Traditional S&OP processes often rely on historical data and manual inputs, which can be prone to inaccuracies, errors, and delays. In an industry where shelf life is limited, and consumer preferences can change overnight, these inefficiencies are costly. The F&B sector needs S&OP solutions that are dynamic, precise, and responsive—qualities that AI delivers with remarkable effectiveness.

How AI is Transforming S&OP in the F&B Sector
AI brings a level of sophistication to S&OP that was previously unattainable. By leveraging AI, F&B companies can move beyond static, spreadsheet-based planning to dynamic, data-driven decision-making.

For example, AI enables real-time data integration from multiple sources, such as point-of-sale (POS) systems, social media trends, and even weather forecasts. Imagine a summer heatwave triggering a surge in demand for cold beverages. With AI, your S&OP process can quickly adjust forecasts and optimize production schedules to meet the spike in demand.

AI also introduces predictive analytics into the equation. Instead of relying solely on historical data, AI models analyze patterns and external signals to predict future demand with greater accuracy. This proactive approach allows businesses to anticipate challenges and capitalize on opportunities before they arise.

Another game-changing capability is scenario planning. What happens if a supplier faces delays? Or if consumer demand shifts mid-season? AI-powered S&OP platforms let companies simulate these "what-if" scenarios, evaluating potential impacts and determining the best course of action.

From Challenges to Opportunities: The Benefits of AI-Powered S&OP
The benefits of integrating AI into your S&OP process go far beyond efficiency. By harnessing the power of AI, F&B companies can unlock new levels of collaboration, precision, and agility.

Reduce Risk: AI reduces the risk of misalignment between departments. With a centralized platform that provides real-time insights, sales, production, and logistics teams can make informed decisions based on the same data. This transparency eliminates silos and fosters cross-functional collaboration.

Increased Agility: AI enhances agility. The F&B industry is often subject to external shocks, from unexpected demand surges to supply chain disruptions. AI-powered tools allow businesses to respond quickly, minimizing the negative impact of unforeseen events.

Profitability: AI drives sustainability—a growing priority for F&B companies and their consumers. By optimizing inventory and reducing waste, AI-powered S&OP aligns profitability with environmental responsibility.

Transforming S&OP into a Competitive Advantage
Sales & Operations Planning is no longer just a process—it’s a strategic advantage for companies ready to embrace the future. With AI, F&B businesses can transform their approach to planning, unlocking efficiencies, enhancing collaboration, and staying ahead of market changes.

If you’re looking to take your S&OP process to the next level, now is the time to act. Let our AI-powered supply chain platform help you navigate the complexities of the F&B industry with confidence and precision. Schedule a demo today to see how AI can revolutionize your S&OP process and drive your business forward.