Supply & Demand Planning Optimization as a Service

Planning performance improvement — continuously

Supply & Demand Planning Optimization as a Service

Planning performance improvement — continuously

Supply & Demand Planning Optimization as a Service

Planning Performance Improvement — Continuously

Rather than one-time projects, U2xAI delivers ongoing planning optimization as a managed service, adapting as your business evolves.

The Planning Performance Challenge

Most companies struggle with planning effectiveness:

Demand planning issues:

Forecast accuracy stuck at 50-65% MAPE despite years of effort
Systematic bias causing excess inventory or stockouts
Excel-based processes consuming 3-5 days per planning cycle
Inability to incorporate promotions, seasonality, or market changes

Supply planning issues:

Misalignment between demand forecasts and supply commitments
Static safety stock policies that don't reflect demand variability
Reactive reorder points causing frequent expedites
No systematic approach to capacity constraints

The result: Excess inventory, stockouts, expedite costs, and frustrated teams spending more time on process than planning.

U2xAI provides continuous planning optimization that adapts to your business—not a one-time fix that becomes outdated in six months.

Areas of Optimization

Demand Signal Improvement and Bias Reduction

What we optimize:

Statistical forecasting methods tailored to your demand patterns
Promotional uplift modeling for planned discounts and sales events
New product forecasting using analogous product patterns
Seasonal pattern detection and adjustment
Systematic bias elimination

How we work:

Deploy ensemble forecasting models combining multiple algorithms
Implement automated bias detection and correction
Incorporate market signals and leading indicators
Provide confidence intervals, not just point forecasts
Continuously retrain models as patterns change

Typical outcomes:

15-30% improvement in forecast accuracy (MAPE reduction)
Elimination of systematic over/under-forecasting
80% reduction in forecast preparation time
Monthly or weekly forecast refresh vs. manual monthly process

Example: A $60M distributor improved forecast accuracy from 58% to 42% MAPE, reducing stockouts by 35% and excess inventory by $1.2M.

Supply and Capacity Alignment

What we optimize:

Supply plan feasibility against capacity constraints
Supplier lead time variability and reliability
Production scheduling and material requirements planning
Multi-echelon inventory positioning across network
Supplier allocation and backup sourcing strategies

How we work:

Model capacity constraints and bottlenecks
Track supplier performance and lead time variability
Simulate supply scenarios for disruption planning
Optimize allocation across multiple warehouses or plants
Build early warning systems for supply risks

Typical outcomes:

30-50% reduction in supplier-caused stockouts
40-60% reduction in expedite freight costs
Better capacity utilization and less idle time
Proactive supply issue identification 2-4 weeks in advance

Example: A $90M manufacturer reduced production line stoppages from 12 days/year to 2 days/year by implementing supplier performance tracking and predictive delay detection.

Inventory and Safety Stock Optimization

What we optimize:

Safety stock levels by product segment and service level target
Reorder points based on demand velocity and lead time variability
ABC/XYZ segmentation for differentiated policies
Multi-echelon inventory positioning
Working capital efficiency

How we work:

Calculate optimal safety stock using statistical methods
Implement dynamic reorder points that adjust to demand changes
Differentiate policies by product value and demand variability
Balance inventory investment against stockout risk
Model inventory-service level tradeoffs

Typical outcomes:

15-30% reduction in safety stock without service degradation
20-40% fewer stockouts on high-priority items
10-15% improvement in inventory turns
$1M-$5M working capital freed for $50M-$200M companies

Example: A $90M industrial supplier reduced safety stock from $4.2M to $3.1M while improving fill rate from 89% to 94%.

Scenario Modeling for Volatility and Growth

What we optimize:

Demand shock response plans
Promotional inventory positioning
Supply disruption contingency strategies
Growth scenarios and capacity planning
Economic downturn preparedness

How we work:

Build scenario modeling templates for common events
Run simulations to quantify impact and identify risks
Develop playbooks for rapid response
Model inventory and cash flow implications
Test resilience of current plans under stress

Typical outcomes:

Faster response to market changes (days vs. weeks)
Reduced downside risk through proactive planning
Better executive confidence in growth plans
Quantified tradeoffs for strategic decisions

Example: A $50M CPG brand used scenario planning to model a flash sale, prebuilt inventory accordingly, and avoided $150K in lost sales from stockouts.

How We Work With Planners

Partner Directly With Planning Teams

We embed with your team, not operate as external consultants:

Attend weekly planning meetings and monthly S&OP sessions
Work in your planning systems (ERP, Excel, planning tools)
Communicate via your channels (Slack, Teams, email)
Train and coach planners on new methods and tools
Operate as extension of your team, not outside advisors

Enhance Existing Tools and Processes

We improve what you have before replacing it:

Optimize Excel-based processes before moving to specialized software
Enhance ERP functionality with better parameters and workflows
Add AI capabilities to existing planning tools
Preserve institutional knowledge and planner expertise
Minimize change management disruption

Introduce AI Where It Adds Measurable Value

We deploy AI pragmatically, not for its own sake:

Start with high-ROI use cases: demand forecasting, reorder optimization
Provide explainable AI that planners can trust and override
Integrate AI recommendations into existing workflows
Track recommendation acceptance rates and model performance
Only expand to additional use cases after proving value

Continuously Monitor and Improve Outcomes

Planning optimization is ongoing, not one-time:

Track KPIs weekly/monthly: forecast accuracy, inventory levels, service rates
Identify performance degradation and root causes
Retrain models as business conditions change
Adjust policies based on results and feedback
Scale successful approaches across additional products or locations

Service Delivery Model

Monthly Engagement Cadence

Week 1: Analysis and Review

Review previous month's planning performance
Analyze forecast accuracy, bias, and error drivers
Assess inventory health and service levels
Identify issues and opportunities

Week 2: Optimization and Recommendations

Update forecasting models and parameters
Adjust safety stock and reorder points
Provide scenario analysis for upcoming events
Prepare recommendations for planning team

Week 3: Implementation Support

Partner with planners to implement changes
Update planning systems and tools
Train on new methods or parameters
Address questions and concerns

Week 4: Monitoring and Ad-Hoc Support

Monitor planning performance
Respond to urgent planning questions
Prepare for next cycle
Handle special projects or scenarios

Deliverables

Planning Performance Dashboard:

Forecast accuracy trends by product/category
Inventory health metrics and alerts
Service level performance vs. targets
Planning cycle time and efficiency metrics

Monthly Planning Brief:

Performance summary and key findings
Root cause analysis of issues
Optimization recommendations with expected impact
Action plan for next cycle

Updated Planning Tools:

Refreshed forecast models
Adjusted safety stock and reorder points
Scenario analysis templates
Planning parameter documentation

Quarterly Business Review:

Strategic planning performance assessment
ROI quantification of optimization efforts
Roadmap for next quarter
Executive presentation

Service Tiers

Essentials

$8K-$12K/month
Best for: $30M-$75M revenue

Monthly planning optimization cycles
Demand forecasting improvement
Safety stock and reorder point optimization
3 hours/month ad-hoc support
Email/Slack access

Advanced

$15K-$22K/month
Best for: $75M-$200M revenue

Bi-weekly planning optimization cycles
Demand and supply planning optimization
Inventory optimization across network
Scenario modeling capabilities
6 hours/month ad-hoc support
Weekly office hours with planners

Enterprise

$25K-$40K/month
Best for: $200M-$500M revenue or complex operations

Weekly planning optimization support
Comprehensive demand/supply/inventory optimization
Advanced AI and machine learning deployment
Multi-site and multi-echelon optimization
Dedicated planning optimization manager
12 hours/month ad-hoc support
Integration with S&OP and IBP processes

Typical Results

Improved Forecast Accuracy

15-30% MAPE improvement (e.g., 55% to 42% MAPE)
50-70% reduction in forecast bias
80% time savings in forecast preparation
Weekly or daily forecast refresh vs. monthly

Lower Inventory and Fewer Stockouts

10-25% total inventory reduction
15-30% safety stock reduction without service degradation
20-40% reduction in stockouts
30-60% reduction in expedite costs

Better Cross-Functional Alignment

Single demand plan trusted by sales, operations, and finance
Reduced planning cycle times (8-hour meetings to 2 hours)
Faster decision-making and issue resolution
Clear accountability and ownership

Increased Planning Resilience

Ability to respond to disruptions in days, not weeks
Scenario planning for promotions, growth, and disruptions
Early warning systems for supply and demand risks
Reduced firefighting and reactive planning

Client Success Stories

Industrial Distributor ($80M revenue)

Challenge:

4,500 SKUs, 55% forecast MAPE
$4.2M excess inventory plus 18% stockout rate
1 FTE spending 5 days/month on demand planning

Optimization approach:

Ensemble demand forecasting
ABC segmentation with differentiated safety stock
Automated replenishment for C-items

Results (12 months):

Forecast MAPE: 55% to 41% (25% improvement)
Inventory: $4.2M to $3.3M (21% reduction)
Stockouts: 18% to 9% (50% reduction)
Planning time: 5 days to 1.5 days per cycle

E-Commerce Retailer ($45M revenue)

Challenge:

Seasonal demand with 60% MAPE during peak periods
$800K annual revenue loss from holiday stockouts
Manual promotional planning causing over/under-buys

Optimization approach:

Promotional uplift forecasting
Scenario planning for peak seasons
Real-time stockout risk alerts

Results (6 months):

Holiday forecast MAPE: 60% to 38% (37% improvement)
Black Friday stockouts: 25% to 6% (76% reduction)
Revenue protection: $600K from prevented stockouts
Post-holiday excess: 40% reduction ($400K markdown savings)

Medical Device Manufacturer ($120M revenue)

Challenge:

200 critical components from 50 suppliers
Production stoppages costing $50K/day
No visibility into supplier risk until delays occurred

Optimization approach:

Supplier performance tracking
Predictive delay detection
Lead time variability safety stock modeling

Results (9 months):

Production stoppages: 12 days/year to 2 days/year (83% reduction)
Stoppage cost avoidance: $500K annually
Procurement savings: $300K from supplier consolidation
Inventory reduction: $600K from lead time optimization

Return on Investment

Typical ROI: 6-12x in Year 1

Example ($100M company at Advanced tier):

Annual investment: $240K

Value delivered:

Inventory reduction: 15% of $20M = $3M cash freed
Carrying cost savings: 25% of $3M = $750K annually
Stockout reduction: 30% reduction = $500K revenue protection
Expedite elimination: 60% reduction = $300K savings
Labor efficiency: 0.5 FTE saved = $75K

Total annual benefit: $1.625M
ROI: 6.8x
Payback period: 2 months

Why U2xAI Is Different

vs. Planning Software Vendors

Software vendors sell licenses and expect you to configure and optimize yourself. Implementation takes 6-12 months with uncertain outcomes.

U2xAI provides optimization as a service. We work with your existing tools and deliver results in 4-8 weeks.

vs. One-Time Consulting Projects

Consultants deliver a planning model or process redesign, then leave. Optimization decays over time as business changes.

U2xAI provides continuous optimization that adapts to your business evolution, market changes, and seasonal patterns.

vs. Internal Planning Teams

Internal teams struggle with capacity constraints, skill gaps, and competing priorities. Planning improvement projects get deprioritized.

U2xAI provides dedicated optimization expertise without full-time hiring costs. We focus exclusively on planning performance.

Getting Started

Week 1-2: Planning assessment and baseline performance measurement
Week 3-4: Quick wins implementation (forecast accuracy, safety stock)
Week 5-8: Full optimization deployment across demand, supply, inventory
Week 9+: Continuous monitoring and improvement cycles

No multi-year commitments. Month-to-month engagement with 30-day termination notice.

The Bottom Line

Planning performance doesn't improve from a one-time project. It requires continuous optimization as your business, products, suppliers, and markets evolve.

U2xAI Supply & Demand Planning Optimization as a Service provides: