The Power of Now
Demand forecasting has been assuming an increasing role in the supply chain, which is crucial for maintaining competitiveness in a progressively more globalized and competitive market.
The current pandemic has taken us on a journey towards a new world and it’s driving business into a new reality - the era of now, in which consumers want answers at an immediate time and choose to purchase from those who have the real ability to respond to their preferences.
The famous phrase "It is not the strongest that survives, nor the most intelligent, but the one that best adapts to changes" represents, in an assertive and exact way, the current context that the business world lives.
Although we are facing the “unknown”, not knowing what the current situation holds, one thing is certain: the secret of walking on water is knowing where the stones are. Strictly speaking, there is no secret. Yes, there is a path to follow, which will only make sense if we know exactly where we are going, because there is no point to run if we are on the wrong road. We could use the most diverse popular aphorisms, or even a GPS that would take us exactly to the place where we intended to arrive, but we cannot go hitchhiking in certain socio-economic contexts, or simply adopt a reactive approach towards new realities or tendencies.
Demand Forecasting should be included on the agenda of any Organization that aims to have a current and clean commercial operation, but also better risk management, maximizing the organization's financial results and competitiveness.
Forecasting models are therefore essential to optimize planning and minimize losses, allowing you to understand the specific needs of what to produce, for what customer profile, when and with what priority. And all of this at the right price. Something that will certainly please organizations’ stakeholders.
"The best way to predict the future is to create it," as Peter Ducker advocates. Many organizations have already realized that demand forecasting, enriched with predictive models, can also be beneficial in identifying patterns or defining behaviors, which translates into a competitive advantage, in the face of an increasingly fierce competition.
And what is the importance of a company being able to extract insights To Challenge Complexity?
The adoption of a planning based on robust, accurate and rigorous predictive models, promises to transform an analytical and reactive organization into an organization of the future, proactive and capable of anticipating difficulties and opportunities. Are there risks? The answer could not be more affirmative, but in an era of uncertainty, marked by a continuous process of digital transformation, one thing is certain: where some see risks, others see opportunities. And the future offers us an opportunity for renewal and transformation.
The cost of doing nothing will always be greater than the cost of being wrong.
Who has information has power and it is in this context that companies will have to operate in the near future, using Intelligent Forecasting techniques, using Data Science, Big Data or Artificial Intelligence tools. Investing in this knowledge will always be a safe source of interest. Unfortunately, most Portuguese companies still make little use of these techniques, which raises the following question: why is the adoption of these tools not more widespread today? We believe that, in many cases, it is due to the lack of a more in-depth knowledge on these matters. Will we stand on the sidelines and watch the train go by?
I trust that if we board this digital train together, we will be driven into the future, on a journey whose destination is the “station of evolution”.
Shall we go?