Matching Demand to Supply: The Stakes Are Higher Than Ever
sources, suggesting which forecasting method to use and testing its performance, and running scenarios, among other capabilities. Some companies also are “re-globalizing” their supply chains and locating closer to end customers, says Brian Deming, industrials senior analyst with RSM US. Along with shortening fulfillment time, this helps companies pick up changes in consumer sentiment occurring on the ground. The companies highlighted here are adeptly deploying tools and adjusting operations to more accurately forecast supply and demand. Their initiatives are reducing costs and inventory levels, while boosting customer satisfaction and sales.
dynamically model demand and supply in near real time and drive rapid decision- making, says Marc Palazzolo, a principal in Kearney’s strategic operations practice. They use AI for demand sensing, as well as to model the corresponding supply scenarios so they can quickly project inventory levels and the implications for working capital. Generative AI solutions can pull together supply and demand data from in-house and external sources and make recommendations that planners can consider, use, and refine, Zimmerman says. When part of a larger, multi-step process, generative AI can take on multiple functions, such as acquiring and reconciling data from various
This means that demand signals arrive later and are more apt to change. Yet many suppliers have less ability to absorb variability. With inventory, capacity, and labor buffers more expensive, suppliers are running their networks with a tight rein. The result? Supply chains have less tolerance for error, Wilson says. Suppliers also need to contend with increasing buyer expectations, says Michael Zimmerman, partner in the strategic operations practice of Kearney, a global consulting firm. With the proliferation of influencers, poor performers are punished with hits to their reputation. To address these challenges, companies increasingly seek advanced analytics and AI solutions that can
CDW: MANAGING INVENTORY, WORKING CAPITAL, AND OBSOLESCENCE
and supply planners then execute strategic buys against these plans, adjusting order sizes based on real-time upstream signals. “This ensures we stock only what our customers will actually need, when they’ll need it,” Nair says. Cash flow is protected and excess inventory minimized. To maintain real-time connectivity with its network of 1,000-plus supply partners, CDW uses EDI, APIs, and B2B feeds. The connections provide line-of- sight visibility into supplier levels and
events such as large customer purchases, new product introduction cycles, and seasonality. While data from before the shift to Blue Yonder isn’t comparable, trendlines show continual improvement in forecast accuracy, Nair says. CDW’s team of demand and statistical planners uses Blue Yonder to analyze historical sales patterns and isolate anomalies, such as unexpectedly large orders that would skew traditional forecasts. The team leverages the system to generate customer demand plans,
“Our supply chain’s job is simple: we deliver on our promises to customers,” says Ray Nair, senior vice president, supply chain operations with CDW, a provider of IT solutions and services.
“We don’t manufacture, we orchestrate. And orchestration
demands as much precision, expertise, and commitment as any production operation,” he adds. While matching supply and demand has always been critical, CDW recently placed greater emphasis on the financial implications of managing inventory levels, working capital, and obsolescence. Because the company holds less inventory, accurately understanding what customers will need and when they’ll need it becomes more important. More accurate forecasts help CDW meet customer demand while protecting cash flow and minimizing excess or aged stock. Several years ago, CDW shifted from a spreadsheet-based planning process to Blue Yonder, whose AI-driven demand and supply planning platform powers CDW’s demand forecasting and inventory optimization processes. The shift to a dedicated team and platform provides a holistic view that factors in
More accurate forecasts help CDW meet customer demand while protecting cash flow and minimizing excess or aged stock. The company brings inventory into its distribution centers as needed. It then configures products and applies value-added services, such as kitting or asset-tagging.
102 Inbound Logistics • January 2026
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