Let’s think of a grocery store in our neighborhood. Usually, people come by and ask for a newspaper, bread, or milk in the morning; while later in the day they may want to buy a variety of products, from diapers to baking powder. If we were given a task where we need to calculate to try and increase the profit of the business, what aspects would we need to take into account? When and how much to order, the hourly demand for each product, pricing, markdown time and duration, inventory level and capacity, customer satisfaction, etc. The bad news is, that even such a small market suffers from the stochastic and day-to-day changing nature of the business world during profit maximization.
As the enterprise gets bigger and more complex, so do its problems and risks. These problems barely have clear-cut answers, such as: How should I adjust prices and promotions to provide a reasonable level of customer service at a reasonable cost, and maximize sales at the same time? This brings about a great need for a dynamic and robust pricing procedure, which can handle the supply chain planning challenges with an end-to-end approach.
This is where TAZI AI comes into play. TAZI provides customized software solutions to the leading companies for their demand forecasting and dynamic pricing problems. It takes the ambiguity to a minimum level with its machine learning-based solutions, by bringing its data science expertise to help. Simulation is the method that allows planning to go beyond strict mathematical formulas, which enables something close to human decision-making, with the help of machine learning. It provides insight into customized pricing and promotion strategies, while not only taking profit maximization as the objective but also aiming to improve relationships with customers and understand their expectations better in a proactive manner. TAZI applies a machine learning-based strategy which enables this aforementioned simulation scheme inside its platform, with only a few clicks.
One should remember that supply chain management is not a process that confines itself to a one-time service in a company’s lifetime, and it requires updates in order to keep up with the fluctuating situations. This brings the notion of “lifetime service” to companies like TAZI, which involves better understanding and reacting to customer needs as time goes by. TAZI’s patented continuous machine learning models handle this task successfully. This up-to-date and differentiated technology outstrips the traditional methods where planning does not fit reality when executed.
TAZI’s solutions enable companies to decrease lost sales significantly by increasing their on-time fulfillment and availability rates. With an effective pricing strategy, businesses will continuously improve their profitability and customer portfolio. However, we should not think of effective supply chain management as only serving better profits. We live in a world with scarce resources. This means that, even if all the companies had enough money that enables them to not care about optimization, there would still be conflicts about utilizing the existing resources. Therefore, sustainability must be one of the main concepts in today’s supply chain management, which deserves a great deal of time and effort to be spent. What would it be like if all the companies managed to generate zero waste in their supply chain? Imagine our small market sold all the products in its store and also satisfied all the demand within an order period! This is another aspect of an effective supply chain; giving less harm to our planet each day. Working with TAZI solutions means contributing to more ideal, sustainable supply chain processes.
