KoçDigital Supply Dynamics: Transform Supply Chain Processes with Artificial Intelligence

In today's business world, supply chain management has become an increasingly complex and rapidly changing field, requiring data- and analytics-fueled decision-making capabilities to stay competitive. Properly implemented artificial intelligence (AI) technologies hold great potential to overcome these challenges and manage uncertainty.

As KoçDigital, we enable the digitalization of supply chain processes thanks to our artificial intelligence-supported supply chain management product, “KoçDigital Supply Dynamics,” which combines operational expertise and analytical competencies .

1- Demand Forecasting & Planning: KoçDigital's demand forecasting solution, powered by AI algorithms, stands out as a powerful tool that increases supply chain efficiency. While traditional forecasting methods attempt to predict future demand based on historical data using simple mathematical calculations, AI offers more accurate and dynamic forecasts with much more sophisticated algorithms.  Machine learning  methods analyze large data sets and account for numerous variables, such as seasonal effects, market trends, and external factors, making demand forecasts more accurate. Furthermore, thanks to our dynamic approach, which utilizes different approaches for appropriate planning horizons, we can create highly accurate demand forecasts for both the short and long term.

One of the most significant contributions of AI in this field is its ability to learn over time.  Because machine learning algorithms are constantly fed with dynamic data sets of similar structure, predictions become more accurate over time and prediction errors are minimized. This allows us to support our customers by significantly reducing issues such as out-of-stocks and excess inventory by integrating operational processes.

Furthermore, regularly conducted  consensus processes  also play a critical role in supply chain planning. Most businesses understand that forecasts from different departments must be consistent. Powered by AI-powered demand forecasting algorithms and implemented through analytical solutions developed by KoçDigital, consensus processes integrate these disparate forecasts and opinions, ensuring that all stakeholders agree on a common forecast, enabling companies to focus on a single goal. Working in conjunction with analytical solutions , consensus algorithms balance the product and location forecasts submitted by each department at the required granularity, creating a more reliable and consistent overall demand forecast.

As a result, AI-powered demand forecasting and consensus processes enable more accurate, flexible, and efficient supply chain decisions. This allows businesses to manage their inventory and execute production planning processes more effectively.

2- Inventory Optimization : Inventory optimization is a factor that directly impacts the profitability of businesses in every sector. Analytical tools are crucial for accurately analyzing different inventory policies and developing the most appropriate solution. When integrated with the right policy and analytical solution, each parameter, such as inventory turnover rate, inventory turnover time, and stock-out rate, enables businesses to adopt a more efficient, cost-effective, and customer-centric approach to their supply chains.

With the data analysis and AI-supported forecasting systems used in the inventory optimization approach developed by KoçDigital, inventory management not only improves the cash tied up in inventory by balancing stock levels, thus improving net working capital, but also provides a sustainable competitive advantage to the business by increasing stock availability and service levels.

3- Automatic Replenishment Planning : KoçDigital's auto-replenishment solution, developed by combining its supply chain and analytics expertise, enables the determination of optimal inventory management policies and parameters and the automatic placement of new orders when inventory levels fall below certain thresholds. This solution minimizes errors and delays in the supply chain by reducing manual intervention and, by maintaining accurate inventory levels, reduces both stockout rates and excess inventory costs. This allows businesses to manage their inventory more efficiently.

This process constantly monitors inventory levels, adhering to rules and approaches consistent with businesses' business practices, while taking into account factors such as demand forecasts, sales data, and supplier lead times. When inventory levels fall below a certain minimum threshold, the system automatically triggers the placement of new orders. This allows businesses to take the necessary steps to ensure a continuous supply without running out of inventory. Systems that can respond quickly to changing demand consistently provide the necessary inventory to meet customer demands on time. Consequently, this solution reduces the risk of out-of-stock and overstock accumulation for businesses. In general, the automated replenishment planning solution developed and managed by KoçDigital eliminates lost time and manual errors in the supply chain, increasing operational efficiency.

Demand forecasting and planning, inventory optimization, and automated replenishment planning, powered by innovative technologies, are critical analytical solutions that increase supply chain efficiency and reduce costs. Solutions that actively utilize artificial intelligence in these processes enable businesses to manage both customer demands and operational needs in a balanced manner. Through KoçDigital's solutions in this area, we support businesses in managing their supply chains more flexibly, efficiently, and sustainably.