UFM was developed by blending four different forecasting methods, with the goal of solving the challenge of planning inventory levels for products with unpredictable buying patterns. After analyzing the algorithm with a customer in the auto parts industry, the results showed that it also addressed the issue of seasonal demand, enabling the demand forecasting solution to provide the best trended, seasonally adjusted forecast possible and maintain appropriate inventory levels of different products in different locations, creating shelf space for products in demand.
“We put it through a proof-of-concept with one of our customers last year and projected an inventory savings of almost US$150m (about R1.1bn), along with significant service level increases,” said Eddie Capel, executive vice president, global operations, Manhattan Associates. “Demand forecasting is an ideal technology to deploy during tough economic times - easy to adopt and it delivers meaningful, tangible results.”
The technology can be deployed as a stand-alone solution or synchronized with the company's financial planning, item planning and inventory optimisation solutions, all part of the its Scope portfolio, designed to help organisations optimise their supply chains from planning through execution.
“Innovative science and maths concepts like UFM are the direct result of the company's industry-leading investment in supply chain research and development,” continued Capel. “It leverages its science advisory board, made up of company experts along with thought leaders from institutions such as MIT, Columbia University and Georgia Tech, to continually identify new areas of supply chain innovation.”
For more information visit www.manh.com/planning/index.html.
