We live in troubled times: from 2020, the world seems to stop for a moment and all companies had to think about what to do next. The pandemic was not over yet when Russia invaded Ukraine, affecting both internal and external market dynamics. These occurrences affect the global economy in many different ways. This situation will have an impact on the manufacturing industry for a long time.
According to research, 81% of manufacturers say they need both a new approach and new tools to accurately forecast their company’s performance. The biggest obstacle to traditional forecasting is a lack of transparency and accessibility of data throughout the supply chain. How can intelligent forecasting help manufacturers? How can you become the hero of your company ready for an uncertain future and generate predictable income, using advanced analytics and modeling?
From 2020, the market is less stable, but 47% of surveyed market leaders also report an increase of revenues during the pandemic. How did it happen? Here’s how to do it in 3 steps:
| Step 1: Focus on Customer Experience 56% of customers expect personalized service, transparency and as fast as possible in-store response time. On the other hand, the producers assume that these expectations will stay with us permanently. Intelligent forecasting software uses data to create the right strategy and technology to satisfy the modern consumer. An effective forecasting engine can significantly enhance this process. |
| Step 2: Enhance working environment from the observations made by the producers, the changes have taken place in the workers themselves. 70% of them have reevaluated their concept and measure of success. 53% of them believe that their roles and tasks at work will change permanently, and 64% of employees have taken on new tasks during the crisis. When manufacturing from a period of economic recession is back into the recovery phase, companies will need accurate forecasting technology that will anticipate and plan for these fluctuations so that changes can be made more quickly in response to market threats or opportunities. |
| Step 3: Invest in digitalization increasing competition on the market puts pressure on companies to reduce costs, constantly improve customer service and increase profits. Companies that have organized and automated processes have a 5-10% profit with the same or higher margins, often enhanced through the use of analytics and machine learning. Combining data with an intelligent forecasting engine enables a robust decision-making framework. |
In very general terms, digital transformation (DT or DX) is a process of integrating the latest IT trends across all business areas, resulting in new business processes, culture, customer experiences and higher profitability.
Combining your company’s data with an intelligent forecasting solution enables you to make conscious business decisions. Utilizing predictive models can further optimize those decisions. Business agility, i.e. the ability to quickly make decisions and introduce changes in response to market factors, empowered by insights and analytics, is the key to the great form of your company’s finances.
Incorporating predictive analytics and a robust forecasting engine can significantly enhance your decision-making.
Those companies that adopt innovations in the field of digital technology account for nearly 20 percent higher revenues than companies operating under the current rules, largely due to the implementation of automation and strategic monitoring systems.
However, it is not a piece of cake! Introducing digital transformation to the company, supported by artificial intelligence and machine learning capabilities, is not a one-day action. In the best case scenario, the process will take several months and will require increased efforts of the departments concerned. The process itself may also encounter many obstacles that require a solution, but with a high awareness of changes, well-chosen tools and experienced implementation team, it is profitable in a long term.
This article was created by our partner, Xactly Corporation and published with their approval.
Xactly is leading the way in Sales Performance Management, enabling businesses to unleash their true Sales Power. Check for more information: https://www.xactlycorp.com
