E2open Releases 2024 Forecasting and Inventory Benchmark Study: Lessons from the Pandemic for Future Resilience
E2open Parent Holdings, Inc. (NYSE: ETWO) has released its 2024 Forecasting and Inventory Benchmark Study at its annual Connect customer conference. The study provides an extensive analysis of supply chain performance throughout the COVID-19 pandemic, offering insights from 2019 to 2023. Key findings include:
1. Consumer demand surged initially but normalized by 2023.
2. Manufacturers streamlined product offerings, focusing on fewer, more efficient items.
3. Planning errors for slow-moving items increased significantly.
4. AI-driven demand sensing consistently reduced forecast error by one-third compared to traditional methods.
5. Companies using multi-echelon inventory optimization with demand sensing reduced safety stock by 40-50%.
The study aims to equip businesses with insights to enhance decision-making and build resilience against future disruptions in the supply chain.
E2open Parent Holdings, Inc. (NYSE: ETWO) ha presentato il suo Studio di Benchmarking sulla Previsione e sull'Inventario 2024 durante la sua annuale conferenza per i clienti, Connect. Lo studio offre una dettagliata analisi delle performance della supply chain durante la pandemia di COVID-19, fornendo informazioni dal 2019 al 2023. Tra i principali risultati ci sono:
1. La domanda dei consumatori è aumentata inizialmente, ma si è stabilizzata nel 2023.
2. I produttori hanno semplificato le offerte di prodotto, concentrandosi su articoli più efficienti e in numero ridotto.
3. Gli errori di pianificazione per gli articoli a movimento lento sono aumentati significativamente.
4. L'uso dell'AI per la percezione della domanda ha costantemente ridotto l'errore nella previsione di un terzo rispetto ai metodi tradizionali.
5. Le aziende che utilizzano l'ottimizzazione multi-ecchelon dell'inventario insieme alla percezione della domanda hanno ridotto le scorte di sicurezza dal 40 al 50%.
Lo studio mira a fornire alle aziende indicazioni utili per migliorare il processo decisionale e costruire resilienza contro future interruzioni nella catena di fornitura.
E2open Parent Holdings, Inc. (NYSE: ETWO) ha lanzado su Estudio de Benchmarking sobre Pronóstico e Inventario 2024 en su conferencia anual para clientes, Connect. El estudio proporciona un análisis detallado del rendimiento de la cadena de suministro durante la pandemia de COVID-19, ofreciendo información desde 2019 hasta 2023. Los hallazgos clave incluyen:
1. La demanda del consumidor aumentó inicialmente, pero se normalizó para 2023.
2. Los fabricantes simplificaron su oferta de productos, centrándose en artículos más eficientes y en menor cantidad.
3. Los errores de planificación para artículos de movimiento lento aumentaron significativamente.
4. La detección de demanda impulsada por IA redujo constantemente el error de pronóstico en un tercio en comparación con los métodos tradicionales.
5. Las empresas que utilizan la optimización de inventario en múltiples niveles con detección de demanda redujeron el inventario de seguridad entre un 40 y un 50%.
El estudio tiene como objetivo proporcionar a las empresas información útil para mejorar la toma de decisiones y construir resiliencia frente a futuras interrupciones en la cadena de suministro.
E2open Parent Holdings, Inc. (NYSE: ETWO)가 연례 고객 컨퍼런스 Connect에서 2024년 예측 및 재고 벤치마크 연구를 발표했습니다. 이 연구는 COVID-19 팬데믹 동안 공급망 성과에 대한 광범위한 분석을 제공하며, 2019년부터 2023년까지의 통찰력을 제공합니다. 주요 발견 사항은 다음과 같습니다:
1. 소비자 수요는 초기에는 급증했으나 2023년에는 정상화되었습니다.
2. 제조업체들은 제품 제공을 간소화하고 더 적지만 더 효율적인 품목에 집중했습니다.
3. 느린 움직임을 보이는 품목에 대한 계획 오류가 크게 증가했습니다.
4. AI 기반 수요 감지가 전통적인 방법에 비해 예측 오류를 지속적으로 1/3로 줄였습니다.
5. 수요 감지와 함께 다단계 재고 최적화를 사용하는 기업은 안전재고를 40-50% 줄였습니다.
이 연구는 기업들이 의사 결정을 개선하고 공급망의 미래 중단에 대한 회복력을 구축하는 데 유용한 통찰력을 제공하는 것을 목표로 하고 있습니다.
E2open Parent Holdings, Inc. (NYSE: ETWO) a publié son Étude de Référence sur les Prévisions et l'Inventaire 2024 lors de sa conférence annuelle Connect dédiée aux clients. L'étude fournit une analyse approfondie des performances de la chaîne d'approvisionnement tout au long de la pandémie de COVID-19, offrant des perspectives de 2019 à 2023. Parmi les principaux résultats, on trouve :
1. La demande des consommateurs a d'abord fortement augmenté, mais s'est normalisée en 2023.
2. Les fabricants ont rationalisé leur offre de produits, se concentrant sur moins d'articles, mais plus efficaces.
3. Les erreurs de planification pour les articles à faible rotation ont considérablement augmenté.
4. La détection de la demande basée sur l'IA a réduit systématiquement l'erreur de prévision d'un tiers par rapport aux méthodes traditionnelles.
5. Les entreprises utilisant l'optimisation des stocks multi-niveaux avec détection de la demande ont réduit leur stock de sécurité de 40 à 50%.
L'étude vise à fournir aux entreprises des informations pour améliorer la prise de décision et renforcer leur résilience face aux perturbations futures de la chaîne d'approvisionnement.
E2open Parent Holdings, Inc. (NYSE: ETWO) hat auf seiner jährlichen Connect-Kundenkonferenz die Studie zur Prognose und Inventarbewertung 2024 veröffentlicht. Die Studie bietet eine umfassende Analyse der Leistung der Lieferkette während der COVID-19-Pandemie und liefert Einblicke von 2019 bis 2023. Zu den wichtigsten Ergebnissen gehören:
1. Die Verbrauchernachfrage stieg anfangs, normalisierte sich aber bis 2023.
2. Hersteller strafften ihr Produktangebot und konzentrierten sich auf weniger, dafür effizientere Artikel.
3. Die Planungsfehler für langsam bewegende Artikel nahmen erheblich zu.
4. KI-gesteuertes Nachfrage-Sensing reduzierte den Prognosefehler im Vergleich zu herkömmlichen Methoden konsequent um ein Drittel.
5. Unternehmen, die Mehr-Ebenen-Inventaroptimierung mit Nachfrage-Sensing nutzen, reduzierten ihren Sicherheitsbestand um 40-50%.
Die Studie zielt darauf ab, Unternehmen mit Erkenntnissen auszustatten, um die Entscheidungsfindung zu verbessern und Resilienz gegenüber zukünftigen Störungen in der Lieferkette aufzubauen.
- E2open's study provides valuable insights on supply chain performance during and after the COVID-19 pandemic
- AI-driven demand sensing technology reduced forecast error by one-third compared to traditional methods
- Companies using multi-echelon inventory optimization with demand sensing reduced safety stock by 40-50%
- The study offers benchmarks for leaders to identify best practices and prepare for future disruptions
- Planning errors for slow-moving items increased by 21 percentage points, nearly double the rise for top movers
- 85% of items classified as slow movers led to significant service issues and profit loss
- Rapid product turnover, with one-third churning annually, raises concerns about hidden costs
Insights
The 2024 Forecasting and Inventory Benchmark Study by e2open offers important insights for supply chain optimization post-pandemic. Key findings include:
- A 10% spike in shipments during early pandemic, normalizing to 1% above 2018 levels by 2023
- Manufacturers streamlined product offerings, but rapid product turnover (33% annually) raises concerns about hidden costs
- Planning errors for slow-moving items increased by 21 percentage points, nearly double that of top movers
- AI-driven demand sensing consistently reduced forecast error by one-third compared to traditional methods
- Multi-echelon inventory optimization paired with demand sensing reduced safety stock by 40-50%
These insights highlight the importance of AI and data-driven decision-making in supply chain management. The study underscores the need for businesses to focus on high-performing products, optimize inventory and leverage advanced technologies to enhance resilience against future disruptions.
E2open's study showcases the transformative power of AI in supply chain management. The consistent one-third reduction in forecast error achieved by demand sensing technology, even during extreme volatility, is a testament to AI's capability in real-time data processing and predictive analytics. This performance highlights the potential for AI to revolutionize inventory management and demand forecasting.
The report also points to the growing importance of multi-echelon inventory optimization, which, when combined with AI-driven demand sensing, led to a remarkable 40-50% reduction in safety stock. This synergy between AI and advanced optimization techniques represents a significant leap forward in supply chain efficiency and risk mitigation.
For investors, this underscores the value proposition of companies like E2open that are at the forefront of integrating AI and machine learning into supply chain solutions. The demonstrated resilience and adaptability of these technologies during the pandemic suggest a strong growth trajectory for AI-powered supply chain management tools in the coming years.
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.
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
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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 just1% 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
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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 top10% of items accounted for75% 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
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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
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.
View source 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
Source: E2open Parent Holdings, Inc.
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