Several supply chain planning companies have briefed me. All say they are investing in artificial intelligence. Many say that they are using generative AI, a type of AI that can create new content and ideas, as part of their journey toward autonomous planning. Autonomous planning is a type of planning that takes humans out of the planning loop.
But when he presents this to many companies, they don’t believe it. “I presented this at Home Depot, and an executive looked me right in the eye and said that's too good to be true. It's not possible. Nobody will give that much control of their plan to an algorithm.” Further, the journey to autonomous planning does not rely on a highly accurate forecast. “I have not cared for 20 years”, Mr. Bakkalbasi states with force, what level of forecast accuracy is achieved. “Forecasting is not an actionable item.” You don't act on a forecast; you act on what you purchase. “That's an action. You manufacture stuff. That's an action. You set a target inventory level. Accepting that as a parameter, that’s an action. You route a truck. That’s an action.
“What does ‘digital” mean? Mr. Bakkalbasi asks rhetorically. “You have to have a digital platform where you get all your relevant data.” And that data has “to be internally consistent. The number one requirement for autonomous planning is master data management. If you don't have your master data correct,” you can’t possibly succeed on this journey.
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