December 13, 2019
Rumors around the big data, data science and machine learning industriesDr. Madhav Durbha, Group Vice President of Industry Strategy at LLamasoft was featured in insideBIGDATA's recurring feature "Above the Trend Line: your industry rumor central" for 2020 Trends/2019 Year-in-Review.
“Next year, AI and ML will move beyond its current hype cycle to offer more tangible use cases that deliver real business value. Here are a few examples of AI applications that will take off in 2020: (1) Predicting Volatile Order Patterns: AI and ML will give companies the ability to predict less stable, highly volatile order patterns from customers. The supplier community is seeing increased volatility in demand signal due to an uptick in order volumes from leading online retailers. Predictability with the ordering is a significant challenge and AI models perform at much more optimal levels in these situations; (2) Market Sensing: AI can help harness the power of external causal data such as weather, GDP, CPI, employment levels, industrial production, etc, as a better predictor of markets shifts and demand drivers, bringing better sensory capabilities into the supply chain, product portfolio, capital expenditure decisions, and long term strategic and capacity planning; (3) Chargeback Reduction: Retailers charge hefty penalties to brand owners for missed OTIF (On Time in Full) deliveries. Deep learning algorithms allow sifting through key shipment data including order types, times, quantities, locations and transportation modes to identify root causes for chargebacks and predict points of failure,” Durbha said.