Revolutionizing supply chain- when AI plays with demand & cost

“If you’re competitor-focused, you have to wait until there is a competitor doing something. Being customer focused allows you to be more pioneering.”- Says Jeff Bezos.

So, what does a fancy technical catchphrase has to do with a grimly business concept? Here lie the answers

What does Predictive Analytics actually do?

Well, Predictive Analytics models are mainly used to predict future possibilities. In the business sector, predictive models can be used to analyze contemporary data and historical facts to comprehend customers, products, and partners and to distinguish potential risks and opportunities for a company.

Predictive analytics is the cutting edge for the complete supply chain and the after-sales service landscape in an industry which is calculated to be worth more than $9 billion by 2020.

Towards a more profitable demand forecasting

When it comes to customer demand forecasting, a precise understanding of demand can help manufacturers improve their service after the initial sale of a product without having to inflate the costs. With the assistance of historical data for a product or product line, it’s reasonable to employ a time series analysis. A time series analysis can surface key data points- seasonal fluctuations, consumer trends, and weather-date purchase correlations. It is most productively utilized when applied to a well-established business with several years’ of production and purchase data. In case the organization doesn't receive a notable volume of performance data, a quantitative forecast is a much more suitable strategy. Qualitative maneuvering pulls data from social sentiment, expert opinions, market research, and comparative analyses to predict demand.

Also, a better cost settlement

Once the consumer demand is set, product pricing comes into the role. Presently, many manufacturers rely on obsolete pricing models, like cost-plus models, and Excel spreadsheets, to price service parts. Perversely, this leads to uneven pricing of commodities geographically. It leads to unsatisfactory customer experiences accompanied with missed profit chance for businesses. When using predictive algorithms to decide the price for service parts, manufacturers need to carefully consider multiple factors that can affect sales, mainly- part location, seasonality, weather, and demand. With these tools at their disposal, companies can unite all these stewards to tweak prices based on what the market will or can bear.

Predictive Analytics is the super tool to upscale your overall business strategy. After all its wisely said, - The measure of growth is the ability to change. Industry 4.0 is not just a flashy catchphrase, it’s a junction of trends and technologies ensures to reshape the way things are made, and business is all about opportunities, the ones Tvarit AI is always eager to seek!

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Tvarit The Team
We’re based out of Frankfurt Germany having the perfect team composition - a German founder bringing vast know-how of machinery coupled with high-quality software expertise of the Indian founders.