Can AI Serve Up a Better Way to Predict Demand? What the Data Tells Us.

Foodservice operators know the struggle. Predicting demand is a constant balancing act. 

Overstocking drives up inventory costs and leads to spoilage. Understocking results in missed sales and frustrated customers. The ability to efficiently match supply with demand is critical for profitability and strong business relationships. 

After speaking to hundreds of wholesalers, we know that demand forecasting has relied on sales history, manual spreadsheets, and market intuition. Foodservice venues/operators are not going to give you forecasts! Today’s supply chain is more unpredictable than ever. Fluctuating customer demand, supply chain disruptions, and economic shifts make forecasting harder than ever before.

Where Traditional Forecasting Falls Short

Many F&B wholesalers still rely on outdated forecasting methods. This leads to several critical challenges:

Limited Adaptability

Foodservice demand is highly dynamic, affected by factors like seasonality, changing consumer preferences, economic shifts, and external disruptions like supply chain bottlenecks. Without adaptive forecasting, businesses risk overproducing for slow periods or underestimating spikes in demand, leading to inefficiencies across the supply chain.

Inefficient Inventory Management

Managing perishable goods requires precise inventory control to prevent waste and ensure product availability. In Australia alone, food waste costs the economy $36.6 billion per year, with wholesalers and food manufacturers responsible for a significant portion (Source: Stop Food Waste Australia). Poor forecasting exacerbates these issues, making it harder to maintain optimal inventory levels.

Reactive Decision-Making

Without access to real-time data and insights, businesses are often forced into a reactive stance, addressing issues only after they arise. A survey conducted in January 2022 revealed that many Australian businesses faced operational challenges due to a lack of proactive risk management strategies (Source: Dataminr), emphasising the need for improved forecasting and real-time data utilisation to anticipate and mitigate potential disruptions.

How AI Enhances Demand Forecasting

AI-driven demand forecasting helps food & beverage distributors and manufacturers make smarter, more data-driven decisions. Here’s how:

• Dynamic Data Analysis – AI processes multiple data points, including sales trends, market conditions, and external factors like weather or economic shifts.

• Customer-Specific Forecasting – AI models analyse order patterns for individual foodservice clients, predicting their needs with greater precision.

• Supply Chain Visibility – AI integrates with supplier and logistics data, identifying potential disruptions before they impact order fulfilment.

• Reduced Waste & Stockouts – With AI-driven recommendations, businesses can optimise inventory levels, reducing losses while maintaining service levels.

What’s next?

AI isn’t about replacing human expertise — it’s about elevating it. As the tech continues to evolve, expect even sharper demand predictions, real-time inventory adjustments, and automated demand planning that makes the whole process smoother.

And speaking of the future, we’ve got something exciting in the works. Meet Daz, your AI-powered Demand Analyst. Designed specifically for food & beverage distributors, Daz helps you stay ahead of demand. Daz monitors internal and external data, proactively identifies trends, and provides actionable insights so you can make smarter inventory decisions before problems arise.

Daz will help you:

• Process sales data and external market trends to generate smart, conversational insights.

• Tailor your product recommendations based on customer-specific order patterns.

• Send proactive alerts for prospects and potential churn risks.

• Optimise pricing and move inventory faster to maximise profit and reduce waste.

Stay tuned — Daz is still in training, but he’s gearing up to change the game for food & beverage distributors. More updates coming soon! Need a Daz in your business? Contact us here.