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Optimizing logistics planning through AI-driven forecasting technology

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Use Case

Optimizing logistics planning through AI-driven forecasting technology

Description

Every year, our customer is faced with the daunting task of managing logistics for the delivery of millions of tires. Efficient planning of personnel and other resources necessary for warehouse operation requires extremely precise forecasts of the expected output quantities of goods. The previous method, based on monthly forecasts from the client, required extensive manual entries in Excel spreadsheets. These were supplemented with our own assessments in order to create a useful planning basis. However, the high expenditure of time and the poor quality of forecasts led to customer dissatisfaction. To address these challenges, pacemaker.ai has developed a tailor-made solution that not only improves the accuracy of forecasts but also significantly simplifies the planning process. By implementing advanced forecasting methods that forecast daily and weekly output volumes for each coming month, the forecast error was reduced by an impressive 18%.Integration of relevant influencing factors‍The new forecasting method uses a variety of data sources, including historical sales data as well as information on holidays, holidays, weather conditions and seasonal fluctuations. These factors play a decisive role in predicting output quantities and contribute to further increasing accuracy.Automation and increased efficiency‍The daily and automatically updated forecasts are made available to the customer, which reduces manual effort to a minimum. This increase in efficiency enables customers to better plan resources and react more quickly to changes in demand.Future prospects and further plans‍By using this innovative technology, our customer was able to strengthen its position in the highly competitive logistics market. The successes of the new forecasting methods motivate further exploration of additional uses of AI in other areas of the company. Overall, this case clearly shows how the use of artificial intelligence and machine learning in logistics planning not only improves forecast accuracy, but can also significantly increase operational efficiency.‍

Details

Industries:

logistics, warehouse, tire, tires, logistics planning, warehouse opeations, delivery

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Gerrit Baumgardt

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