The Rise of AI in Supply Chain Management

In today’s fast-paced and increasingly complex global marketplace, effective supply chain management is critical to the success of any organisation. One area where technology is making a substantial impact is demand forecasting. Traditionally, demand forecasting relied heavily on historical data and manual processes to predict future trends. However, with the advent of artificial intelligence (AI), supply chain forecasting is undergoing a transformative shift, enabling businesses to achieve unprecedented levels of accuracy and responsiveness.

In this article, we explore how AI-driven demand forecasting is revolutionising supply chains, particularly for Australian and New Zealand businesses. We’ll examine the benefits of implementing AI in supply chain operations, the technology’s impact on accuracy and decision-making, and how organisations can leverage AI tools to optimise their demand planning processes.

The Importance of Demand Forecasting in Supply Chains

Demand forecasting is the process of predicting future customer demand for products or services. Accurate forecasting is essential for supply chain efficiency, as it helps businesses to plan production schedules, manage inventory levels, and ensure timely deliveries. When demand forecasts are off, organisations risk stockouts, overstocking, and increased operational costs.

In the current global environment, businesses face unprecedented challenges in predicting demand due to fluctuating market conditions, changing customer preferences, and external disruptions such as the COVID-19 pandemic. As a result, traditional forecasting methods, which often rely on spreadsheets and historical data analysis, struggle to keep up with the complexities of modern supply chains. This is where AI steps in to offer a more accurate and responsive solution.

How AI Enhances Demand Forecasting Accuracy

AI-driven demand forecasting leverages machine learning algorithms to analyse large datasets from various sources, such as historical sales data, market trends, social media insights, and external factors like weather conditions or economic indicators. This allows AI systems to uncover patterns and correlations that humans might overlook.

Here’s how AI enhances demand forecasting accuracy:

1. Processing Large Volumes of Data
   AI can process and analyse vast amounts of data in real-time, drawing insights from both internal and external sources. Traditional forecasting models may only rely on sales history or trends, while AI models can incorporate a wide array of factors, such as supply chain disruptions, competitor actions, and even geopolitical events, all of which impact demand.
2. Improved Pattern Recognition
   Machine learning algorithms excel at identifying patterns in data that are not immediately apparent to human analysts. For example, AI can detect seasonality, changing customer preferences, and regional differences in demand with far greater accuracy than traditional methods.
3. Real-Time Forecasting Adjustments
   One of the biggest advantages of AI is its ability to adapt to new data in real-time. Unlike static traditional models, AI-driven forecasts are dynamic, adjusting to market changes as they happen. For instance, if a sudden shift in consumer preferences occurs, AI can rapidly update demand forecasts, enabling businesses to make more informed decisions.
4. Predictive Insights for Better Decision-Making
   AI not only forecasts future demand but also provides predictive insights that can help supply chain managers anticipate disruptions and act accordingly. By analysing real-time data, AI can predict potential bottlenecks, inventory shortages, or spikes in demand, giving businesses the opportunity to adjust their strategies proactively.

Benefits of AI-Driven Demand Forecasting for ANZ Organisations

For businesses in Australia and New Zealand, implementing AI-driven demand forecasting offers a range of significant benefits that enhance supply chain efficiency and competitiveness. These advantages include:

1. Increased Forecasting Accuracy
   With AI-driven models, ANZ organisations can improve the accuracy of their demand forecasts by up to 50%, according to industry reports. This level of accuracy reduces the risk of stockouts or overstocking, which can be particularly critical for industries with perishable goods, such as food and beverage, healthcare, and agriculture.
2. Reduced Operating Costs
   One of the most immediate benefits of more accurate demand forecasting is the reduction of excess inventory. AI can help businesses maintain optimal inventory levels, reducing storage costs and minimising waste. Additionally, better forecasting allows for more efficient production planning, reducing manufacturing costs by ensuring that resources are used effectively.
3. Improved Customer Satisfaction
   When businesses can predict demand with greater accuracy, they are better positioned to meet customer expectations. Ensuring that products are available when and where customers want them leads to improved customer satisfaction and loyalty. This is particularly important for e-commerce and retail sectors, where customer demand can fluctuate rapidly.
4. Increased Agility and Responsiveness
   AI allows businesses to respond to changing market conditions more quickly. In a fast-paced business environment, having the ability to adjust forecasts and adapt supply chain strategies in real-time is a significant competitive advantage. Whether it’s responding to sudden changes in demand due to promotional events or adjusting to unforeseen supply chain disruptions, AI enhances overall supply chain agility.
5. Sustainability Gains
   Reducing waste and maintaining optimal inventory levels not only benefits the bottom line but also aligns with sustainability goals. In the ANZ region, where there is increasing pressure on organisations to adopt environmentally sustainable practices, AI-driven demand forecasting can help businesses reduce excess production and minimise their environmental footprint.

AI Demand Forecasting in Action: Industry Applications

The benefits of AI-driven demand forecasting are being realised across various industries. Here are some real-world applications of AI demand forecasting in sectors relevant to Australia and New Zealand:

1. Retail and E-Commerce
   Retailers and e-commerce companies in Australia are increasingly adopting AI to enhance their demand forecasting. By analysing customer behaviour, purchasing patterns, and market trends, AI-driven tools can predict demand for different product categories with great precision. For example, during major sales events such as Black Friday or Boxing Day, AI systems can help retailers optimise their inventory and avoid stock shortages.
2. Agriculture and Food Supply Chains
   AI-driven demand forecasting is revolutionising the agriculture sector in New Zealand, where unpredictable weather conditions and market fluctuations pose constant challenges. AI tools can analyse weather patterns, soil conditions, and crop yields to provide more accurate forecasts for food production, helping farmers and distributors manage supply more effectively and reduce food waste.
3. Healthcare and Pharmaceuticals
   In the healthcare sector, accurate demand forecasting is essential for managing the supply of pharmaceuticals and medical equipment. AI-driven tools help healthcare providers and pharmacies predict demand for specific medications and equipment, ensuring that critical supplies are always available. This was especially crucial during the COVID-19 pandemic, where surges in demand for medical supplies were unpredictable.
4. Manufacturing
   Manufacturers in Australia are adopting AI-driven forecasting to streamline production schedules and reduce lead times. By predicting demand more accurately, manufacturers can optimise their production processes, reduce downtime, and ensure timely delivery of products to customers.

Implementing AI-Driven Demand Forecasting: Key Considerations for ANZ Businesses

For businesses in Australia and New Zealand looking to implement AI-driven demand forecasting, there are several key considerations to keep in mind:

1. Data Quality and Availability
   AI models rely on large volumes of high-quality data to deliver accurate forecasts. Businesses must ensure they have access to relevant data sources, including sales data, customer behaviour, external market trends, and supply chain information. Investing in data management systems that ensure data accuracy and completeness is critical to the success of AI-driven forecasting.
2. Integration with Existing Systems
   AI-driven forecasting tools need to integrate seamlessly with existing supply chain management systems. Businesses should assess their current technology infrastructure and ensure that AI tools can be incorporated into their workflows without causing disruptions. Cloud-based AI solutions offer a scalable and flexible option for many organisations.
3. Skilled Workforce and Training
   Implementing AI tools requires a workforce with the right skills to manage and interpret AI-driven insights. Organisations should invest in training programs to upskill employees in AI technologies and analytics. Hiring data scientists and AI experts may also be necessary to oversee the development and maintenance of AI forecasting models.
4. Collaboration Across the Supply Chain
   AI-driven forecasting works best when there is collaboration across the entire supply chain. Suppliers, manufacturers, distributors, and retailers need to work together to share data and insights. Building strong relationships with supply chain partners can enhance the accuracy of forecasts and lead to more efficient operations.
5. Cost-Benefit Analysis
   While AI-driven demand forecasting offers numerous benefits, it also requires a financial investment in technology and training. Businesses should conduct a cost-benefit analysis to assess the potential return on investment (ROI). In most cases, the long-term savings from reduced inventory costs, improved customer satisfaction, and enhanced operational efficiency will outweigh the initial costs.

How Trace Consultants Can Help ANZ Organisations with AI-Driven Demand Forecasting

At Trace Consultants, we specialise in helping businesses across Australia and New Zealand optimise their supply chain operations through advanced technologies, including AI-driven demand forecasting. Our team of supply chain experts works closely with organisations to implement AI solutions that improve accuracy, reduce costs, and enhance supply chain agility.

We offer a comprehensive range of services, including:

• Data Assessment and Strategy Development: We help organisations assess the quality and availability of their data, develop strategies for data collection and management, and ensure that AI tools are integrated into their existing supply chain systems.
• AI Tool Implementation and Customisation: We work with businesses to implement AI-driven forecasting tools that are tailored to their specific needs and industry requirements. Our solutions are designed to integrate seamlessly with existing systems and provide real-time forecasting insights.
• Training and Support: Our team provides training and ongoing support to ensure that your workforce is equipped with the skills needed to manage and interpret AI-driven insights. We also offer continuous monitoring and optimisation of AI models to ensure they deliver accurate and actionable forecasts.
• Collaboration and Partner Engagement: We foster collaboration across the supply chain, ensuring that data and insights are shared with key stakeholders to enhance overall supply chain performance

Soft Automation in Supply Chain: A New Frontier for Efficiency

The modern supply chain is under constant pressure to improve efficiency, reduce costs, and increase responsiveness. In this fast-paced environment, automation has become a key enabler of performance improvements. But full-scale automation can be costly, complex, and disruptive to existing systems. Enter soft automation, a more flexible and accessible approach that is reshaping how supply chains across various industries—including retail, manufacturing, FMCG, and healthcare—operate.

Soft automation refers to the use of tools and technologies that allow for the automation of processes without significant infrastructure changes or heavy coding. It focuses on incremental improvements and leverages tools like low-code/no-code (LCNC) platforms, such as the Microsoft Power Platform, which offer system-agnostic, scalable solutions.

Soft Automation in Various Industries

1. Retail

In retail, soft automation can play a significant role in optimising inventory management, replenishment processes, and logistics. For example, instead of relying on fully automated robotic systems in warehouses, retailers can use LCNC platforms to automate routine tasks such as stock level monitoring, order generation, and real-time tracking of shipments.

A retailer might use Power Automate (part of the Microsoft Power Platform) to create workflows that trigger replenishment orders when inventory falls below a certain threshold. This not only reduces stockouts but also prevents overstocking, allowing for better cash flow management.

2. Manufacturing

In the manufacturing sector, where complex systems and processes already exist, soft automation can provide a bridge between legacy systems and new technology investments. Manufacturers can automate processes like production scheduling, quality control checks, and machine maintenance alerts without overhauling their entire system.

For example, using Microsoft Power Apps, manufacturers can develop custom apps to track machine performance and trigger preventive maintenance, ensuring that equipment downtime is minimised and production runs smoothly. Soft automation also allows for quicker adaptations to changes in production requirements without the need for complex reprogramming.

3. Fast-Moving Consumer Goods (FMCG)

In the FMCG sector, where time-to-market is critical, soft automation allows businesses to be agile without sacrificing quality or speed. Tools like Power BI can automate data collection and reporting, giving FMCG companies real-time insights into sales performance, inventory levels, and distribution efficiency.

By automating demand forecasting and integrating this data with supply planning, FMCG businesses can better anticipate market needs and adjust their production schedules accordingly, reducing the risk of overproduction or stockouts.

4. Healthcare

Healthcare supply chains are notoriously complex, dealing with a wide range of items from pharmaceuticals to medical equipment. Soft automation offers healthcare providers a way to streamline procurement, inventory management, and distribution while ensuring compliance with stringent regulatory requirements.

For instance, Power Automate can be used to set up workflows that track the expiry dates of medical supplies and automatically reorder when necessary. This reduces waste and ensures that critical supplies are always available. In healthcare, where patient care is paramount, the ability to quickly and efficiently manage supplies can directly impact clinical outcomes.

Why Low Code/No Code Solutions are the Future of Supply Chain Automation

One of the key enablers of soft automation is the rise of low-code/no-code (LCNC) platforms, which allow non-technical users to build, customise, and automate workflows with minimal coding expertise. The Microsoft Power Platform is one such tool, offering a suite of applications (Power BI, Power Automate, Power Apps, and Power Virtual Agents) that can be easily integrated into existing supply chain processes.

System and Architecture Agnostic

A major advantage of LCNC platforms like the Microsoft Power Platform is that they are system and architecture agnostic. This means they can be deployed across different software environments, whether you are working with legacy systems or modern ERP solutions. As a result, organisations can implement soft automation without worrying about whether their existing systems will be compatible.

For example, a retailer using an older ERP system can still integrate Power Automate to optimise their procurement process without having to replace the ERP. This flexibility allows companies to gradually introduce automation in a cost-effective manner, addressing immediate needs while building a foundation for future growth.

How Trace Consultants Can Help

At Trace Consultants, we understand the complexity of modern supply chains and the challenges involved in introducing new technologies. We help organisations across retail, manufacturing, FMCG, healthcare, and other industries to implement soft automation strategies that drive efficiency and improve operational performance.

Our approach begins with a comprehensive assessment of your existing systems and processes. From there, we identify opportunities where low-code/no-code solutions can be used to automate routine tasks, enhance visibility, and reduce manual workloads. Whether you're looking to streamline inventory management, optimise logistics operations, or improve forecasting accuracy, Trace Consultants can guide you through every step of the process.

Start Small, Think Big

Soft automation is not about replacing your entire workforce or ripping out your existing infrastructure—it's about making incremental changes that deliver immediate benefits. With the right tools, like Microsoft Power Platform, and the right partner, such as Trace Consultants, your organisation can begin the journey towards a more agile, efficient, and resilient supply chain.

Are you ready to explore the potential of soft automation in your supply chain? Reach out to Trace Consultants today to discover how we can help.

Supply chains across industries are under increasing pressure to be more agile, cost-efficient, and resilient. From managing global disruptions to coping with the complex logistics of fast-paced markets, supply chain leaders are seeking technological solutions that provide flexibility and scalability without requiring extensive IT resources or custom development. This is where low-code and no-code (LCNC) solutions come into play, offering an unprecedented opportunity to automate workflows, enable data capture, and deliver structured reporting—all with minimal coding expertise.

In this article, we will explore how low-code and no-code platforms are making a significant impact on supply chains across key sectors, including Retail, Manufacturing, Fast-Moving Consumer Goods (FMCG), Healthcare, and Pharmaceuticals. We will also highlight how Trace Consultants has had notable success in helping clients deploy Microsoft Power Apps-based solutions to deliver immediate and tangible results in these industries.

Understanding Low-Code No-Code Solutions

Low-code and no-code platforms empower users—many of whom may not have formal coding skills—to design and implement applications, automate processes, and improve data management. The fundamental difference between the two lies in the level of technical engagement required:

• Low-code platforms provide pre-built templates and drag-and-drop tools but may require some coding knowledge for more complex customisations.
• No-code platforms are entirely user-friendly, relying on visual interfaces to create fully functional applications without writing a single line of code.

These platforms have gained significant traction in recent years due to their ability to enable rapid development, reduce reliance on IT departments, and provide cost-effective solutions that can be deployed in a fraction of the time compared to traditional software development.

Key Applications of Low-Code No-Code Solutions in Supply Chain

While LCNC platforms are versatile across various business functions, they hold particular promise for supply chain management, where data-driven decisions, operational efficiency, and adaptability are crucial. Below, we look at how these platforms are transforming supply chains in Retail, Manufacturing, FMCG, Healthcare, and Pharmaceuticals across Australia and New Zealand.

1. Retail: Enhancing Inventory Management and Store Operations

In the highly competitive retail environment, efficient supply chain management is critical to reducing operational costs, optimising inventory, and delivering better customer experiences. LCNC platforms can automate multiple retail supply chain processes, from inventory tracking to demand forecasting and store-level operations.

For example, Microsoft Power Apps has been used successfully in retail supply chains to automate workflows related to inventory replenishment, reducing the time needed for manual processes and minimising stockouts. Retailers can design apps that connect to existing enterprise resource planning (ERP) systems, providing real-time insights into inventory levels across multiple locations. This allows managers to make data-driven decisions on stock transfers and reorder points, thus improving overall store operations.

Moreover, LCNC platforms facilitate reporting and analytics, enabling retailers to capture data from sales, returns, and customer preferences to fine-tune supply chain strategies. This level of visibility helps retailers maintain lean operations while responding rapidly to changes in demand patterns.

2. Manufacturing: Automating Production and Quality Control

Manufacturing supply chains are characterised by intricate processes, stringent quality control measures, and often multiple stakeholders across the value chain. Low-code and no-code platforms offer manufacturers the ability to streamline their operations by automating workflows and capturing data for production planning, inventory management, and quality assurance.

One common application is the automation of production scheduling. Using Power Apps, manufacturers can build custom applications that automate scheduling tasks, ensuring that production meets customer demand without overburdening the workforce or machines. This helps manufacturers avoid costly delays and maintain efficient production flows.

Additionally, LCNC platforms can be integrated with IoT devices and sensors for real-time monitoring of equipment performance and product quality. For instance, a no-code app can trigger alerts when a machine requires maintenance, thereby reducing unplanned downtime. These platforms also enable structured reporting on quality control metrics, ensuring that manufacturers can quickly identify and address issues before they affect output.

3. FMCG: Streamlining Supplier Collaboration and Demand Planning

Fast-Moving Consumer Goods (FMCG) companies rely heavily on efficient supply chains to meet the rapid pace of consumer demand. In this context, low-code and no-code solutions play a vital role in enhancing collaboration between suppliers, manufacturers, and retailers, as well as improving demand planning.

LCNC platforms enable supplier collaboration portals that provide real-time updates on order status, shipments, and inventory levels. By automating supplier interactions, FMCG companies can reduce lead times, minimise errors, and improve communication across the supply chain. For example, a Power Apps-based portal allows suppliers to update order fulfilment status in real time, which automatically triggers notifications and updates for the buying teams.

Demand planning is another critical area where LCNC platforms shine. By leveraging historical sales data and external market factors, custom-built applications can automate demand forecasting, reducing the reliance on manual spreadsheets and enabling more accurate predictions of future demand. This, in turn, improves inventory management and reduces the risk of overstocking or stockouts.

4. Healthcare: Improving Patient Flow and Supply Logistics

Healthcare supply chains are complex, with hospitals and medical facilities required to manage a vast array of resources—from medical supplies and pharmaceuticals to food services and patient transport. Low-code and no-code platforms can help automate several aspects of healthcare supply chain management, ensuring that critical supplies are available when and where they are needed.

A key area of impact is in patient flow management, where LCNC platforms can streamline the logistics of moving patients through different areas of the hospital. Custom applications can automate bed assignment, coordinate transport between departments, and track the availability of medical equipment in real time. By improving operational efficiency, healthcare providers can reduce patient wait times and enhance overall care quality.

Another important application is in inventory management for medical supplies and pharmaceuticals. Power Apps can be used to create apps that automatically track the consumption of medical supplies, ensuring that reordering occurs well before critical stock levels are reached. This helps hospitals avoid shortages and maintain compliance with regulatory standards for medical supply availability.

5. Pharmaceuticals: Enhancing Compliance and Traceability

Pharmaceutical supply chains face unique challenges, including the need for strict compliance with regulatory standards and the requirement for robust traceability. Low-code and no-code platforms can help address these challenges by automating compliance processes and providing real-time visibility into the movement of pharmaceutical products.

For example, Power Apps can be used to create track-and-trace systems that monitor the movement of pharmaceuticals from manufacturing to distribution. This level of traceability is critical for ensuring product safety and compliance with Good Distribution Practice (GDP) standards. These systems also enable pharmaceutical companies to respond quickly to recalls or other supply chain disruptions.

LCNC platforms are also used to automate regulatory reporting, ensuring that pharmaceutical companies can easily generate reports required by government authorities. By automating these processes, pharmaceutical companies reduce the risk of non-compliance and free up resources for more value-added activities.

How Trace Consultants is Leading the Way with Microsoft Power Apps

At Trace Consultants, we have seen firsthand how low-code and no-code platforms, particularly Microsoft Power Apps, are transforming supply chains across various sectors. Our expertise lies in understanding our clients’ specific supply chain challenges and delivering tailored solutions that leverage Power Apps to automate workflows, enable data capture, and deliver structured reporting—often with immediate, tangible outcomes.

Case Study: Power Apps in Retail Supply Chain

In one notable engagement with a leading Australian retailer, Trace Consultants implemented a Power Apps-based solution to automate the inventory replenishment process. The retailer faced challenges with manual processes that were slow and error-prone, leading to stockouts and lost sales. By deploying a custom-built app that integrated with the retailer’s ERP system, Trace helped automate stock monitoring, reordering, and reporting.

The result was a significant reduction in stockouts, improved inventory turnover, and a more efficient use of store personnel who no longer needed to spend time manually tracking inventory levels. This project demonstrated how even a relatively simple LCNC solution could have a powerful impact on supply chain performance.

Case Study: Power Apps in Healthcare Supply Chain

In the healthcare sector, Trace Consultants worked with a regional hospital network in New Zealand to improve its medical supply logistics. The hospital network was struggling with inconsistent inventory levels and frequent stockouts of critical supplies. Trace developed a Power Apps-based application that provided real-time visibility into supply levels across multiple locations, automatically triggered reordering when stock levels dropped below a set threshold, and generated compliance reports.

This solution not only reduced stockouts and improved patient care but also delivered cost savings by reducing the amount of expired inventory and ensuring that supplies were ordered based on actual usage patterns.

The Future of Low-Code No-Code in Supply Chains

The adoption of low-code and no-code platforms is set to accelerate as more organisations recognise their potential to deliver quick wins and long-term efficiencies. For supply chain leaders in Australia and New Zealand, LCNC solutions provide a way to respond to ongoing challenges, whether it be managing costs, improving customer service, or navigating complex regulatory environments.

As supply chains continue to evolve in complexity, the need for customised, scalable, and adaptable solutions will only grow. Low-code and no-code platforms offer a flexible approach that enables organisations to continuously improve their supply chain operations without the time, cost, or complexity of traditional software development.

In a world where supply chain resilience, efficiency, and agility are more important than ever, low-code and no-code solutions are playing a pivotal role in driving transformation. From retail and FMCG to healthcare and pharmaceuticals, these platforms are helping organisations automate workflows, enable data capture, and provide structured reporting—leading to better decision-making and improved outcomes.

At Trace Consultants, we are proud to be at the forefront of this revolution, helping our clients unlock the potential of low-code and no-code solutions like Microsoft Power Apps to deliver tangible, immediate results. Whether you’re looking to streamline your supply chain, improve collaboration with suppliers, or enhance your compliance and reporting capabilities, LCNC platforms offer a path to success in today’s dynamic business environment.

If your organisation is ready to explore the benefits of low-code and no-code platforms in the supply chain, we at Trace Consultants are here to help you every step of the way.

How will your supply chain benefit from embracing the power of low-code and no-code solutions?