E2open Releases 2024 Forecasting and Inventory Benchmark Study: Lessons from the Pandemic for Future Resilience
02 Outubro 2024 - 10:15AM
Business Wire
The latest study highlights opportunities for businesses to
strengthen resilience with artificial intelligence (AI)-driven
demand sensing to optimize inventory, realize more value from
planning investments, and better serve clients during disruptions
of any size.
E2open Parent Holdings, Inc. (NYSE: ETWO), the connected supply
chain SaaS platform with the largest multi-enterprise network,
announced today at its annual Connect customer conference the
release of its highly anticipated 2024 Forecasting and Inventory
Benchmark Study. This in-depth special report provides an extensive
analysis of supply chain performance throughout the entirety of the
biggest disruption in modern history, the COVID-19 pandemic —
offering unique insights that cover the years before, during and
after the pandemic’s impact.
This year’s study follows e2open’s 2021 report, which examined
the initial influence of the pandemic on global supply chains. Now,
with data spanning from 2019 to 2023, the 2024 Forecasting and
Inventory Benchmark Study answers key questions that emerged as
supply chains around the world navigated the complexities of
lockdowns, supply shortages and fluctuating demand. By leveraging
real-world data, this report equips businesses that make, move and
sell goods with valuable insights to enhance decision-making and
build resilience against future disruptions.
Key Findings from e2open’s 2024 Forecasting and Inventory
Benchmark Study:
Changes in Consumer Purchasing and Manufacturing Strategies
- At the pandemic’s onset, consumer demand surged, causing a 10%
spike in shipments and driving record-high sales per item. However,
by 2023, sales growth normalized to just 1% above 2018 levels. To
adapt to supply chain constraints, manufacturers streamlined
product offerings and focused on fewer, more efficient items.
However, the continued rapid pace of product turnover, with
one-third churning annually, raises concerns about hidden costs
associated with inventory, packaging, and manufacturing
changeovers.
Planning Error for Top Movers and the Tail
- The pandemic underscored the disproportionate difficulty of
planning for slow-moving items. Planning errors for these "tail"
items increased by 21 percentage points—nearly double the 11-point
rise for top movers. With 85% of items classified as slow movers,
companies experienced significant service issues and profit loss.
On the other hand, the top 10% of items accounted for 75% of sales.
This highlights an opportunity for businesses to reduce their
portfolios and drive greater profitability by focusing on
high-performing products.
Forecast Error and the Role of AI to Sense Demand
- Throughout the pandemic, demand sensing technology consistently
reduced forecast error by one-third compared to traditional
methods, even during the extreme volatility of panic buying. With
AI-driven insights, businesses were able to adapt to rapid shifts
in consumer behavior and maintain better forecast accuracy, proving
the value of real-time data and artificial intelligence in
mitigating large-scale supply chain disruptions.
Impact on Inventory Management
- The pandemic emphasized the importance of balancing inventory
to avoid overstocking and production inefficiencies. Companies
using multi-echelon inventory optimization paired with demand
sensing were able to reduce safety stock by 40-50%, enhancing
efficiency and risk mitigation during disruption.
“The research enables us to identify specific opportunities to
increase resilience, particularly by leveraging AI-driven demand
sensing to improve forecast accuracy, manage product assortment,
and use multi-echelon inventory optimization to better manage stock
levels in volatile times," said Pawan Joshi, EVP of Products and
Strategy at e2open. "This year’s Forecasting and Inventory
Benchmark Study offers valuable primary research for leaders,
economists, and analysts seeking a fact-based assessment on how the
pandemic reshaped supply chains. By comparing their performance to
the report’s benchmarks, leaders can identify best practices to
boost and prepare for future disruptions."
Download the report today at e2open.com to learn how to build
resilience into your supply chain, improving your day-to-day
operations and putting you in a better position to navigate the
next major disruption.
About e2open
E2open is the connected supply chain software platform that
enables the world’s largest companies to transform the way they
make, move, and sell goods and services. With the broadest
cloud-native global platform purpose-built for modern supply
chains, e2open connects more than 480,000 manufacturing, logistics,
channel, and distribution partners as one multi-enterprise network
tracking over 16 billion transactions annually. Our SaaS platform
anticipates disruptions and opportunities to help companies improve
efficiency, reduce waste, and operate sustainably. E2open’s
headquarters is now in Dallas, TX. Moving as one.™ Learn More:
www.e2open.com.
E2open and “Moving as one.” are the registered trademarks of
E2open, LLC. All other trademarks, registered trademarks and
service marks are the property of their respective owners.
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version on businesswire.com: https://www.businesswire.com/news/home/20241002486322/en/
Media Contact: 5W PR for e2open e2open@5wpr.com 408-504-7707
Investor Relations Contact: Dusty Buell dusty.buell@e2open.com
investor.relations@e2open.com
Corporate Contact: Kristin Seigworth VP Communications, e2open
kristin.seigworth@e2open.com pr@e2open.com
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