AI-based insights can dramatically improve supply chain planning by making forecasts more accurate, operations more agile, and decisions more data-driven. Unlike traditional approaches, AI can process massive amounts of structured and unstructured data, detect patterns humans may miss, and generate actionable recommendations in real time.
SCT works with clients to develop organizational capabilities to identify key signals impacting their supply chain planning performance, and develops the ability to ingest, present, and automate the influence of these signals to calibrate forecasts and critical decision points across the supply chain.
- Data cleansing and governance processes
- Joint capacity planning with suppliers
- Advanced demand sensing capabilities
- Joint customer forecasting, pricing, and promotions.
- Ingestion of supply disruption risk.
With SCT Advisory’s guidance, adopting IoT and AI insights into integrated business planning delivers some of the highest ROI in digital supply chain transformation because you’re combining real-time data visibility (IoT) with predictive and prescriptive analytics (AI). Together, they reduce latency, improve accuracy, and allow you to make smarter, faster decisions. SCT observes the following ROI opportunities from supply planning initiatives:
- Revenue Growth
- 2–5% uplift in sales from higher service levels and fewer stockouts.
- Better ability to capture demand surges (e.g., weather-driven, promotions).
- Faster product launches with real-time supplier and logistics readiness.
- Inventory & Working Capital
- 15–30% reduction in inventory through real-time visibility and multi-echelon optimization.
- 10–20% reduction in safety stock thanks to dynamic demand/supply signals.
- Less obsolescence and write-offs, especially for perishable or high-velocity SKUs.
- Cost Savings
- 10–20% lower logistics costs via route optimization, live ETA updates, and fewer expedited shipments.
- 5–15% procurement savings from better supplier coordination and fewer spot buys.
- 10–20% lower waste/spoilage from IoT-enabled condition monitoring (e.g., cold chain).
- Reduced production downtime with predictive maintenance.
- Agility & Resilience
- 30–50% faster response to supply disruptions or demand spikes.
- Significant reduction in “bullwhip effect” due to real-time demand signals.
- Shorter planning cycles (hours/days instead of weeks).
- Forecast Accuracy & Decision Quality
- 10–20% improvement in forecast accuracy when IoT signals (POS, RFID, sensors, GPS, weather, etc.) feed AI-driven demand planning.
- 20–40% improvement in scenario planning speed with AI simulations using real-time data.
Bottom Line ROI
IoT and AI Insights can deliver 3–8x ROI within 2–3 years for companies that fully integrate IoT + AI into planning. A 12–24 month payback is common for large-scale programs (especially if inventory and logistics are pain points). Benefits are both hard (cost, revenue, working capital) and soft (visibility, resilience, faster decisions).
