Demand planning is the process of forecasting future product demand to optimize inventory, production, and supply chain decisions. It is a critical component of supply chain management that helps businesses have the right products, in the right quantities, at the right time.
Traditional demand planning methods rely on spreadsheets and static rules that cannot adapt to changing market conditions. AI demand planning transforms this process by using machine learning algorithms that analyze historical data, seasonal patterns, promotion impact, and external factors to generate more accurate, actionable forecasts.
Effective AI demand planning reduces stockouts (which cost the industry $1.8 trillion annually), decreases carrying costs by eliminating excess inventory, and frees working capital trapped in unsold products. Soberan automates this entire process: from forecasting to purchase order generation.