#USAMfgHour Twitter Chat Recap for May 21, 2020
On May 21, 2020, Tony Nash, the CEO and Founder of Complete Intelligence (@complete_intel), hosted a #USAMfgHour Twitter chat on forecasting and AI for manufacturers. Below is a summary of Tony’s (@TonyNashonAsia) questions and answers on this very important topic.
Question 1: What are some of the trends manufacturers can expect to see in 2020 and in the next few years?
Answer 1a: “Procurement and category leaders will increasingly become strategy players within their companies. With AI/ML tools for cost transparency & scenario planning for manufacturing, these leaders can show ROI, significantly improve margins”
Answer 1b: “#Supplychains will become more regionalized over the coming years. #Manufacturers will need #AI #ML cost technology to quickly run scenarios on cost estimates, supplier comparison and risk assessments for each new #sourcing location”.
Question 2: Why choose an #AI solution for cost control in #manufacturing?
Answer 2: “Non-AI forecasting methods are limiting. As companies are reforecasting, decision cycle time is critical. AI/ML models compute millions of calculations to optimize cost outlooks. Better information & forecasts = more informed clients = better decisions”
Question 3: Did you know the average consensus forecast error is double digits? Do you know the accuracy of the forecasts you are using?
Answer 3: “We regularly test our #AI #ML forecast accuracy compared to consensus forecast. Our core belief is that data & math should drive the forecast results without human intervention or bias. What we found was astonishing. CI outperformed consensus 88% of the time.”
Question 4: If enterprise BOM materials aren’t publicly traded commodities, can these material costs be forecasted accurately?
Answer 4: “Yes! One of the challenges we see for product lines is that consensus forecasts & indexes lack context and detail for specific products, components, and raw materials. Our #AI #ML platform incorporates enterprise & market factors for specific cost & revenue items.”
Question 5: Should my company build an #AI #ML cost analysis model in-house or outsource?
Answer 5: “Consider the budget, time to results, and expected outcomes. Looking for value and access to results quickly? Look to outsource those #AI #ML projects. Commercialized AI applications like @complete_intel’s CI Futures & CostFlow have a track record & proven success.”
Visit Complete Intelligence to learn more about its #AI and #MachineLearning platform that gives highly accurate revenue and cost #forecasts
The #USAMfgHour chat is founded by @CVTPlastics @DCSCInc @witzshared and @SERVICECASTER. Be sure to follow the official account for chat highlights, recaps, and information at @USAMfgHourChat and visit us on other platforms to keep in touch between chats.