Demand Forecasting: From Gut Calls to Machine Learning
Demand forecasting is where AI has penetrated deepest and paid back first in the supply chain, for a simple reason: forecast error turns directly into inventory money. A McKinsey analysis cited on Maersk's website gives the number most often quoted: customers adopting predictive analytics see logistics costs fall 15% on average, inventory levels drop 35%, and service quality improve 65%.

But cross-border is far harder than a domestic supply chain. Ocean freight lead times routinely run 30 to 60 days, which means the forecast you make today is betting on demand two months out, with schedule volatility from capacity swings, port congestion, and clearance delays layered on top. By the time the demand signal reaches the factory it is badly lagged. That is why cross-border players take a consistently pragmatic view of forecasting: they do not expect it to be perfectly accurate, only more accurate than a gut call, and the difference is profit.




