Autonomous Procurement & Inventory (AP&I)
Demand and Inventory Planning are core processes in traditional Supply Chain Management (SCMs).
Traditionally human-intensive, Demand Planning typically results in inaccurate and outdated forecasts even when driven by advanced statistical and machine learning techniques.
Managing inventory through Operations-Research-based optimization techniques frequently results in inaccurate (and often delayed) inventory parameter setting. The advanced complexity of today’s supply chains often requires repetitive operator interventions to update inventory parameters, leading to costly delays and amplified errors.
In a world that is simultaneously uncertain and evolving with great velocity, AP&I’s Reinforcement Learning AI Engine offers the first ever Integrated
Demand / Inventory Planning solution, redefining Supply Chain Planning through:
- Supply Chain Behavioral Learning (replacing Forecasting): Building on comprehensive correlation of past supply chain demand, inventory and supply, AP&I derives hundreds of millions of potential supply chain scenarios. For each scenario, AP&I learns and evolves to make continuously improving replenishment decisions. Over time, near real time behavioral learning drives competitive advantages throughout the supply chain.
- Autonomous Replenishment (without Equation-Driven Optimization): Through a continuous Cross Supply Chain Visibility of current near real time supply chain behaviors (aka, granular changes across demand, inventory and supply), AP&I builds its learning capabilities to autonomously generate replenishment orders that maximize efficiency and profitability.
Once applied, AP&I demonstrates tangible ROI across three primary dimensions:
- Bottom Line Improvements (P&L): Reduce costs related to carrying Inventory, Supply Chain Management, Cross-Warehouse Movements, Expediting and Expiration (whenever applicable)
- Top Line Improvements (P&L): Minimize Stockouts while maximizing Availability
- Cash to Cash Cycle Balance Sheet: Minimize Inventory Days to free tied up Capital