Stop planning monthly in a daily market 

Most supply chains still plan in monthly cycles. The market moves daily.  Point-of-sale data shifts. Promotions change demand patterns. 

Weather alters buying behavior, and pricing decisions trigger sudden volume swings. Without continuous sensing, planning becomes educated guessing. Small demand changes go unnoticed until they become shortages or excess inventory.  

Demand sensing addresses this gap by continuously analyzing downstream demand signals. Instead of reacting weeks later, companies can respond immediately.  

From reactive corrections to continuous control  

Traditional forecasting approaches rely on periodic updates. This creates latency between what is actually happening in the market and what the supply chain believes is happening. 

Without demand sensing: 

  • Inventory imbalances across locations  
  • Unexpected stockouts or overstocks  
  • Increasing waste and working capital pressure  
  • Firefighting planners and reactive decisions  

 

Turning demand signals into action 

With demand sensing in place, companies move from reactive corrections to proactive control. 

Demand signals are captured daily and analyzed using machine learning to identify meaningful deviations. The system evaluates the impact and recommends corrective actions.  

Key downstream signals typically include: 

  • Point-of-sale transactions  
  • Promotions and marketing activities 
  • Price changes  
  • Weather patterns  
  • Seasonal and local demand drivers 

This is not just a forecast update. It is continuous demand control that keeps planning aligned with real market behavior.  

Improving both forecast accuracy and inventory decisions  

Improved forecasting is only part of the value. Demand sensing also improves inventory decisions across the network.  

As signals change, inventory can be dynamically rebalanced. If demand accelerates in one region while softening in another, the system recommends redeployment actions to protect service where it is at risk and reduce excess where it is building.  

By reducing the gap between shelf reality and planning assumptions, organizations gain valuable time to adjust production, deployment, and transportation decisions — before small deviations become costly disruptions.  

 

Measurable performance gains — without adding work  

Demand sensing delivers results that matter to both planners and executives:  

  • 15–40% improvement in short-term forecast accuracy  
  • 10–30% reduction in inventory  
  • 2–5 percentage-point service-level increase  

The system continuously ingests fresh demand data, detects what matters, and escalates only what requires attention. Planners work by exception, focusing on the few items or locations that truly matter.  

No spreadsheet overload. No manual re-forecasting cycles.  

Just clearer decisions.  

A core capability of the AI-first control layer  

Demand sensing delivers the greatest value when implemented as part of a broader decision architecture.  

When combined with probabilistic planning and multi-echelon optimization:  

  • Near-term signals become more accurate  
  • Structural buffers across the network are optimized  
  • Service improves  
  • Working capital decreases  

This shift represents a move from static planning cycles toward continuous decision orchestration where supply chains operate with greater speed and precision.  

Want to learn more?

With 20 + years of experience and more than 1,000 successful projects, Optilon helps companies design supply chains that work – and keep improving.

Book a meeting with a supply chain expert to explore how Optilon’s AI-powered demand sensing solutions can help you respond faster to market signals, improve forecast accuracy, and keep inventory aligned with real demand. 

Supply chain design is often slow. Analysts spend weeks preparing data and building models. Decisions then move between spreadsheets and email threads.

Natural language modeling changes this. Teams can describe what they need and the system builds it.  

Build models faster with less effort 

Teams can create network scenarios in hours instead of weeks simply by asking the system to build them. Automated workflows prepare data, configure models, and generate scenarios with minimal intervention.

The system automates data preparation and pipeline creation. It standardizes workflows and provides ready baseline models. API-connected inputs ensure consistency across scenarios. 

KPIs influenced: 

  • 70 to 90 percent reduction in data preparation time 
  • 2 to 5 times faster scenario turnaround  

Shared workspaces that reduce friction 

Collaboration improves when teams work in shared, governed workspaces with clear ownership and version control. This eliminates scattered files and reduces rework.  

Teams gain centralized visibility of models and data, with clear ownership and permissions. Decisions are fully traceable, and review processes become more structured. 

KPIs influenced: 

  • 25 to 40 percent reduction in time spent aligning assumptions across teams 
  • Improved decision quality, supported by consistent model lineage and governance 

Scenario exploration at scale 

Once models exist, teams can run new scenarios with natural language and compare outcomes in intuitive dashboards. Cloud solving makes it easy to explore more alternatives. 

Teams can run product-level scenarios across multiple timeframes, solve them in parallel, and compare alternatives more clearly. 

KPIs influenced: 

  • More scenarios per planning cycle, supporting better decision coverage 
  • Shorter time to executive-ready insight thanks to clean dashboards 

A shift to coordinated decision making 

With natural language modeling and orchestration, organizations move from fragmented, specialist-heavy workflows to a coordinated decision environment. AI handles complex modeling so teams can focus on evaluating and aligning decisions. 

Outcome KPI: 

  • Higher adoption across nontechnical teams because the interface becomes accessible and guided by natural language 

Want to learn more?

With 20 + years of experience and more than 1,000 successful projects, Optilon helps companies design supply chains that work – and keep improving.

Book a meeting with a supply chain expert to explore how Optilon’s natural language modeling and decision orchestration solutions can help your teams design, evaluate, and align on network decisions faster and with greater transparency. 

From reactive operations to proactive resilience  

Supply chains face constant shifts in demand and cost. 
Many companies still rely on disconnected tools and limited visibility. 

AI-driven optimization brings planning together. It helps organizations move from reactive firefighting to proactive decisions.

A supply chain digital twin for one unified view 

Data often sits in separate systems, making it hard to get a consistent view. Our Supply Chain Digital Twin creates a single source of truth across demand, supply, inventory, capacity, and transportation data, improving consistency and speeding up scenario analysis. 

This creates harmonized planning assumptions, faster and more reliable scenario cycles, and clearer trade-offs between cost and service. 

KPIs influenced: 

  • 15 to 30 percent faster scenario cycle times through unified modeling 
  • Fewer alignment loops across planning teams 

Smarter forecasting and optimization 

AI selects the best forecast model for each product and region. Optimization evaluates trade-offs between cost, service, risk, and sustainability across network and inventory strategies.  

The system selects the best forecast model for each product and region, supports multi-echelon and network optimization, and enables routing across road, rail, air, and ocean. 

KPIs influenced: 

  • Improved forecast reliability, enabling better upstream and downstream planning 
  • Lower total cost through optimized routing and inventory 
  • Higher service levels from scenario-verified strategies 

High performance solving 

GPU-accelerated optimization makes it possible to run larger and more complex models faster. Giving organizations the ability to explore more alternatives.  

KPIs influenced: 

  • Order-of-magnitude speed increases in large scale optimization (aligned with GPU acceleration referenced) 
  • More scenarios per cycle, improving strategic resilience 

Interfaces built for business users 

Planners can simulate changes and immediately see the impact on service, cost, lead time, and emissions. This reduces dependency on technical experts and speeds internal alignment.  

KPIs influenced: 

  • Shorter decision lead times, because teams can self-serve 
  • Faster cross-functional alignment around scenario outcomes 

Enterprise decision readiness 

Human-in-the-loop workflows let teams test logic, run scenarios, and deploy decisions without IT. This strengthens cross-functional collaboration and supports continuous planning.  

KPIs influenced: 

  • Reduced IT dependency, speeding execution 
  • Higher deployment success, since decisions are validated collaboratively 

Want to learn more?

With 20+ years of experience and more than 1,000 successful projects, Optilon helps companies design supply chains that work – and keep improving.

Book a meeting with us to contact us to explore how Optilon’s AI-driven optimization solutions can support your planning and decision-making. 

How can AI help supply chain professionals understand their data faster?

Generative AI is becoming an important capability in modern supply chain planning. When connected to the right data and workflows, it can help planners turn insights into actions faster.

In this on-demand webinar, Victor Bengtsson demonstrates practical use cases of Generative AI in supply chain planning — including how AI can analyze complex datasets, identify delays and root causes, and automate reporting and communication.

This webinar is part of the Optilon Supply Chain Conference and includes a realistic demo case, giving you concrete examples of how AI can support your planning processes today.

Watch the webinar recording here

What you will learn 

  • How to interpret large supply chain datasets more efficiently 
  • How to detect delays and identify root causes faster 
  • How to automate recurring reports and performance summaries 
  • How AI can support planner communication and daily workflows 
  • How Generative AI fits into the broader supply chain AI landscape 

Who should watch 

Relevant for professionals working with: 

  • Supply chain planning 
  • Demand and supply planning 
  • S&OP 
  • Logistics and operations 
  • Supply chain development and digitalization 

It is especially useful for teams that want to explore how Generative AI in supply chain can improve day-to-day planning work, communication, and decision making. 

You can find our other upcoming events here!

More than ten years ago, Orkla began a journey to simplify and strengthen their supply chain planning. What started as a technical challenge soon became a story of close collaboration. Today, Orkla’s planning process runs smoother than ever – supported by smart technology, strong teamwork, and a shared drive to keep improving.

Optilon & Orkla

About Orkla

Orkla is a leading industrial investment company with brands and consumer-focused businesses in over 100 markets worldwide. Orkla Health offers branded health products across Europe. Orkla Home & Personal Care develops cleaning and hygiene products, backed by strong brands and an integrated regional value chain.

CHALLENGE

A supply chain split across systems

The collaboration between Optilon and Orkla (Orkla Health and Orkla Home & Personal Care) goes back more than a decade. It all began when Cederroth – later acquired by Orkla – first started working with Optilon.

After the acquisition in 2017, however, Orkla found itself juggling several ERP systems (including SAP ECC and SAP S/4). As a result, processes became fragmented, costs were duplicated, and there was no clear overview of the business. Information was scattered across systems, making collaboration tricky and decision-making slow.

Therefore, Orkla knew they needed a way to connect the dots, and they turned to Optilon.

SOLUTION

Connecting systems, creating supply chain clarity

Optilon provided Orkla with a solution that could weave together their different ERP environments – creating a central hub for forecasting and planning. This way, Orkla gained full visibility of inventory, availability, and flows across companies, markets, and warehouses.

By integrating all systems into one solution, Orkla established a single source of truth and a unified way of working across departments.

Consequently, planning and forecasting became faster, more accurate, and less dependent on manual work – leading to improved collaboration, lower costs, and a stronger foundation for data-driven decisions and future growth.

Since then, Optilon has continued to be a trusted partner. Together, they’ve focused on making planning, logistics, and inventory management smarter and more efficient – not through big revolutions, but through continuous improvement.

Optilon feels like an extension of our own team. They’re attentive, proactive, and easy to reach. They have a customer-centric way of working, and together we’ve been on a shared journey of improvement.

Anne Stenberg, Forecast Developer at Orkla Health

In fact, that steady, step-by-step approach is what’s shaped the successful supply chain planning process Orkla relies on today.

The reason our partnership continues to thrive is the combination of having the right system and the right partner. We feel strong support from Optilon and can clearly see the progress over time.

Anne Stenberg, Forecast Developer at Orkla Health

RESULT

Long-term results built on trust and teamwork

When Orkla introduced Optilon’s supply chain planning solution, they quickly reduced inventory levels by around 20% – without compromising service levels. A clear sign that combining smart technology with the right way of working delivers real impact.

Even more impressive, however, is that those results have lasted. Orkla’s inventory levels have remained stable over time, proving that this isn’t about quick wins, but about building long-term sustainability.

Over the years, Optilon and Orkla have developed a close partnership grounded in transparency and continuous dialogue. The teams share insights openly and work toward the same goals.

Equally important is the way of working. Optilon and Orkla meet monthly to review progress, adjust priorities, and plan for upcoming changes in Orkla’s supply chain. These regular check-ins keep everyone aligned, creating both clarity and progress.

At the same time, the dialogue plays a central role. Optilon doesn’t just deliver what’s asked for. They challenge, recommend, and share knowledge.

Our main contact at Optilon, Erik Westlund, knows our business well and doesn’t just say “yes”. He asks why, suggests better alternatives, or advises us to wait when it’s in our best interest.

Anne Stenberg, Forecast Developer at Orkla Health

Ultimately, behind it all lies Orkla’s own strength in driving change. Their ability to embrace new ways of working has turned ideas into lasting results.

We’re committed to continuous improvement and open to change. Optilon consistently shows that they want what’s best for us. We feel valued and receive honest, constructive challenges.

Anne Stenberg, Forecast Developer at Orkla Health

MAIN BENEFITS

  • 20% lower inventory levels – without lowering service levels
  • Long-term stability and sustainability in supply chain performance
  • Continuous improvements through structured follow-up and dialogue
  • A trusted partnership driving smarter, more efficient planning

Looking to make your supply chain smarter? Let's talk.

With 30 years of experience and more than 1,000 successful projects, Optilon helps companies design supply chains that work – and keep improving.

Book a meeting with us to discover how we can support your goals.

What happens when a world-leading metal powder manufacturer realizes its forecasting system is more of
a patchwork than a precision tool?

Höganäs, a leader in the industry, faced this exact challenge. Recognizing the need for a cohesive, efficient system, they embarked on a journey to revolutionize their forecasting and inventory planning processes.

About Höganäs

Höganäs is a world-leading producer of iron and metal powders, and partners with customers to create solutions for automotive, brazing, electric motors, additive manufacturing, and water treatment.

With a commitment to innovation and sustainability, the company continues to push the boundaries of material science, creating solutions for a resource-efficient future.

CHALLENGE

A supply chain out of control

Without a centralized forecasting system, Höganäs struggled to maintain control over its global supply chain. Economic shifts, evolving regulations, and varying demands across markets made accurate planning difficult.

Operating in 85 countries, their forecasting process depended on over 50 people using a patchwork of manual tools, leading to high error rates, excessive stock levels, and sluggish reporting cycles. Instead of guiding operations, forecasting had become a time-consuming challenge—one that slowed responsiveness and increased costs.

It was clear: Höganäs needed a more integrated, automated approach to regain control.

SOLUTION

A connected approach to forecasting

Having a clear view of demand across a global network was nearly impossible for Höganäs. The complexity of managing forecasts across multiple regions left gaps in visibility, making it difficult to respond to shifting market conditions. It was at this point that Ralf Carlström, Sales Director at Höganäs, turned to Optilon.

After evaluating several options, including major vendors, Carlström and his team decided to partner with Optilon. Their previous experience with Optilon during an ERP implementation had been positive, making the choice feel natural.

To handle the challenges, Optilon recommended an automated solution, integrating advanced analytics and a user-friendly collaboration tool. This new system allowed multiple sales teams across countries to contribute seamlessly to a unified forecast.

Höganäs citat 2

RESULT

Results and benefits of Optilon’s supply chain planning solution

The partnership between Höganäs and Optilon was a huge success and resulted in the following results:

MAIN BENEFITS

  • Reduced forecast errors by 50%, improving demand accuracy and minimizing excess inventory.
  • Cut reporting time in half, enabling faster decision-making and quicker responses to market changes.
  • Implemented an automated forecasting solution, streamlining supply chain planning and reducing manual work.
  • Optimized inventory and warehouse management, aiming for a 10% inventory reduction.

By embracing an automated and collaborative forecasting approach, Höganäs has turned its supply chain into a more agile and resilient system, positioning itself for long-term growth in an ever-changing market.

Struggling with supply chain complexity? Let’s talk.

With a track record of over 1,000 successfully completed projects and 20+ years’ experience, Optilon is your trusted supply chain optimization partner. Book a meeting with us to discuss how we can help you create a solution that aligns with your specific needs and future business goals.

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