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The latest study highlights opportunities for businesses to strengthen resilience with artificial intelligence (AI)-driven demand sensing to optimize inventory, realize more value from planning investments, and better serve clients during disruptions of any size.
ORLANDO, Fla., October 02, 2024--(BUSINESS WIRE)--E2open Parent Holdings, Inc. (NYSE: ETWO), the connected supply chain SaaS platform with the largest multi-enterprise network, announced today at its annual Connect customer conference the release of its highly anticipated 2024 Forecasting and Inventory Benchmark Study. This in-depth special report provides an extensive analysis of supply chain performance throughout the entirety of the biggest disruption in modern history, the COVID-19 pandemic — offering unique insights that cover the years before, during and after the pandemic’s impact.
This year’s study follows e2open’s 2021 report, which examined the initial influence of the pandemic on global supply chains. Now, with data spanning from 2019 to 2023, the 2024 Forecasting and Inventory Benchmark Study answers key questions that emerged as supply chains around the world navigated the complexities of lockdowns, supply shortages and fluctuating demand. By leveraging real-world data, this report equips businesses that make, move and sell goods with valuable insights to enhance decision-making and build resilience against future disruptions.
Key Findings from e2open’s 2024 Forecasting and Inventory Benchmark Study:
Changes in Consumer Purchasing and Manufacturing Strategies
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At the pandemic’s onset, consumer demand surged, causing a 10% spike in shipments and driving record-high sales per item. However, by 2023, sales growth normalized to just 1% above 2018 levels. To adapt to supply chain constraints, manufacturers streamlined product offerings and focused on fewer, more efficient items. However, the continued rapid pace of product turnover, with one-third churning annually, raises concerns about hidden costs associated with inventory, packaging, and manufacturing changeovers.
Planning Error for Top Movers and the Tail
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The pandemic underscored the disproportionate difficulty of planning for slow-moving items. Planning errors for these "tail" items increased by 21 percentage points—nearly double the 11-point rise for top movers. With 85% of items classified as slow movers, companies experienced significant service issues and profit loss. On the other hand, the top 10% of items accounted for 75% of sales. This highlights an opportunity for businesses to reduce their portfolios and drive greater profitability by focusing on high-performing products.