Amazon is renowned for its lightning quick delivery, even for obscure product requirements. This is not usually because of the delivery system alone, but also due to the concept of demand sensing. Top digital firms such as Amazon are noted for the enormous quantities of data warehousing done, which enables them to predict demand. The obscure product gets delivered so quick because based on the user’s historical data, the company may have simply predicted it being ordered, so had shipped the item long before the actual order was placed. This eases the pressure on the supply chain, reducing market volatility. New data sources are now available that can be tapped to get such vital customer insights. This is even happening in low-volume industries such as wind power equipment or aerospace. The former for example is being worked out by The Swedish-Danish duo of Vattenfall and Orsted leveraging existing neural networks. Several business analytics tools are available to glean this information out of platforms such as social media, connected devices, wearables, geo-location devices and digital personal assistants.

Source:https://www.strategy-business.com/article/The-Magic-of-Predicting-Demand-from-Data?gko=94906&sf179893534=1

Uploaded Date:16 March 2018