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Showing posts from November, 2025

5 Ways AI is solving the problem of Inaccurate Demand Forecasting in Manufacturing

  Manufacturers have invested heavily in forecasting, deploying new planning tools, analytics dashboards, and data lakes to analyze data coming from all directions—sales pipelines, supplier metrics, production schedules, logistics feeds. Yet, despite the analytics and dashboards, accuracy still slips.  The problem isn’t a lack of data. It’s a lack of connection.  Sales teams plan in CRM, operations in ERP, procurement in SRM, and logistics in WMS. Each function sees a part of demand, but no one sees the whole. When a major customer changes an order or a distributor delays a shipment, that signal takes days to ripple through the organization. By the time procurement adjusts or production recalibrates, the opportunity or risk has already passed.  That’s why accuracy remains low even when data is rich. This latency in signal propagation directly impacts the bottom line; delayed responses contribute to an average inventory holding cost spike of 8-12% of COGS due to unnec...