{"id":8805,"date":"2020-12-14T10:33:26","date_gmt":"2020-12-14T09:33:26","guid":{"rendered":"https:\/\/www.azap.com\/blog\/uncategorized\/exogenous-data-supply-chain-optimize-forecasts"},"modified":"2022-04-04T12:26:25","modified_gmt":"2022-04-04T10:26:25","slug":"exogenous-data-supply-chain-optimize-forecasts","status":"publish","type":"post","link":"https:\/\/www.azap.com\/en\/blog\/blog-category\/demand-forecast\/exogenous-data-supply-chain-optimize-forecasts","title":{"rendered":"Exogenous data in Supply Chain : how to optimize your forecasts?"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.6.6&#8243; custom_margin=&#8221;||-90px|||&#8221; custom_padding=&#8221;0px|||||&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_row _builder_version=&#8221;4.6.6&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;0px||||false|false&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.6.6&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_text _builder_version=&#8221;4.6.6&#8243; _module_preset=&#8221;default&#8221; text_font=&#8221;||||||||&#8221; text_text_color=&#8221;#011f99&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p><span class=\"JLqJ4b ChMk0b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"fr\" data-phrase-index=\"0\">Very often histories &#8211; provided they are long enough &#8211; carry very well the information that one seeks to model and project into the future.<\/span> <span class=\"JLqJ4b ChMk0b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"fr\" data-phrase-index=\"1\">For example, the seasonality of a product (ice cream, soup, etc.) emerges from history.<\/span> <span class=\"JLqJ4b ChMk0b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"fr\" data-phrase-index=\"2\">The weather plays an obvious role but very often at the margin in relation to the decisions to be made.<\/span> <span class=\"JLqJ4b ChMk0b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"fr\" data-phrase-index=\"3\">In this case, we remain in a classic approach because we have the history.<\/span> <span class=\"JLqJ4b ChMk0b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"fr\" data-phrase-index=\"5\">In cases where the history does not exist (new products) or is too short, we need additional explanations, exogenous information because the analysis of the time series of sales (or demand) is not sufficient.<\/span> <span class=\"JLqJ4b ChMk0b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"fr\" data-phrase-index=\"6\">.<\/span> <span class=\"JLqJ4b ChMk0b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"fr\" data-phrase-index=\"7\">We must therefore flesh out the approach with advanced algorithms using AI.<\/span><\/p>\n<p><span style=\"font-size: 16px; color: #011f99;\"><strong>Exogenous data: how AZAP integrates them?<\/strong><\/span><\/p>\n<p><span style=\"font-size: 16px; color: #011f99;\"><span class=\"VIiyi\" lang=\"en\"><span class=\"JLqJ4b ChMk0b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"fr\" data-phrase-index=\"0\">AZAP&#8217;s algorithms integrate this exogenous data in two complementary forms:<\/span><\/span> <\/span><\/p>\n<ul>\n<li><span class=\"VIiyi\" lang=\"en\"><span class=\"JLqJ4b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"fr\" data-phrase-index=\"0\">Basic data, for example temperature as a weather indicator, website traffic for e-commerce sales, incidence rate for epidemics, indicators specific to each business (we think for example of the automobile or to the building). <\/span><\/span><\/li>\n<li><span class=\"VIiyi\" lang=\"en\"><span class=\"JLqJ4b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"fr\" data-phrase-index=\"0\">event data characterizing each event, such as: <\/span><\/span>\n<ul>\n<li><span class=\"VIiyi\" lang=\"en\"><span class=\"JLqJ4b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"fr\" data-phrase-index=\"0\">a date range, the products concerned, the distribution network or the associated customer scope <\/span><\/span><\/li>\n<li><span class=\"VIiyi\" lang=\"en\"><span class=\"JLqJ4b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"fr\" data-phrase-index=\"0\">but also the type of event (example: free products or giraffe, price promotion or 3 for 2 purchased &#8230;, action of a blogger to highlight a product, highlight in a catalog, supplier break &#8230;) <\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li><span class=\"VIiyi\" lang=\"en\"><span class=\"JLqJ4b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"fr\" data-phrase-index=\"0\">Depending on the type of event, additional information is expected: the price variation, the size of the photos in the catalog or the leaflet, the existence of a sales incentive. In the pharmaceutical industry, for the flu for example, we are interested in indicators of trends in the epidemic (some specialized sites providing this information).<\/span><\/span><\/li>\n<\/ul>\n<p><strong><span class=\"VIiyi\" lang=\"en\"><span class=\"JLqJ4b ChMk0b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"fr\" data-phrase-index=\"0\">Exogenous data: an example to help understand the difference between traditional techniques and the use of this type of information<\/span><\/span> <\/strong><\/p>\n<p><span class=\"VIiyi\" lang=\"en\"><span class=\"JLqJ4b ChMk0b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"fr\" data-phrase-index=\"0\">In the case of an influenza vaccine: the time series of sales is completely seasonal, AZAP determines the average seasonality based on the histories of recent years and gives the range of uncertainty: strong year &#8211; weak year.<\/span> <span class=\"JLqJ4b ChMk0b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"fr\" data-phrase-index=\"1\">This is perfect for setting the medium term, planning the production and purchases of active ingredients.<\/span> <\/span><\/p>\n<p><span class=\"VIiyi\" lang=\"en\"><span class=\"JLqJ4b ChMk0b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"fr\" data-phrase-index=\"3\">For the short term, this is not enough: when does the epidemic really start?<\/span> <span class=\"JLqJ4b ChMk0b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"fr\" data-phrase-index=\"4\">How big is the epidemic this year?<\/span> <span class=\"JLqJ4b ChMk0b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"fr\" data-phrase-index=\"5\">In this case, AZAP exploits exogenous information which gives the incidence rate every week &#8230; and makes it possible to adjust the short-term forecast.<\/span><\/span><\/p>\n<p><span style=\"font-size: 16px; color: #011f99;\"><span class=\"VIiyi\" lang=\"en\"><span class=\"JLqJ4b ChMk0b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"fr\" data-phrase-index=\"0\">It should be noted that this &#8220;exogenous&#8221; information are:<\/span><\/span><\/span><\/p>\n<ul>\n<li><span class=\"VIiyi\" lang=\"en\"><span class=\"JLqJ4b ChMk0b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"fr\" data-phrase-index=\"0\">Either internal to the company and therefore rather easy to obtain and reliable (the price for example, the traffic on the commercial site &#8230;).<\/span> <\/span><\/li>\n<li><span class=\"VIiyi\" lang=\"en\"><span class=\"JLqJ4b ChMk0b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"fr\" data-phrase-index=\"2\">Either external and therefore often more difficult to obtain even if certain information is completely public and \/ or available on the net.<\/span> <span class=\"JLqJ4b ChMk0b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"fr\" data-phrase-index=\"3\">In this case, AZAP collects them directly from the sites concerned.<\/span><\/span><\/li>\n<\/ul>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.6.6&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p><strong><span class=\"VIiyi\" lang=\"en\"><span class=\"JLqJ4b ChMk0b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"fr\" data-phrase-index=\"0\">A question ?<\/span> <span class=\"JLqJ4b ChMk0b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"fr\" data-phrase-index=\"1\">A project ?<\/span> <span class=\"JLqJ4b ChMk0b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"fr\" data-phrase-index=\"2\">Do not hesitate to contact us <a href=\"https:\/\/www.azap.com\/en\/contact\">here<\/a><\/span><\/span><\/strong><\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Very often histories &#8211; provided they are long enough &#8211; carry very well the information that one seeks to model and project into the future. For example, the seasonality of a product (ice cream, soup, etc.) emerges from history. The weather plays an obvious role but very often at the margin in relation to the [&hellip;]<\/p>\n","protected":false},"author":594,"featured_media":8305,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[193,197],"tags":[],"class_list":["post-8805","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-demand-forecast","category-innovation-en"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Exogenous data in Supply Chain : how to optimize your forecasts? - AZAP<\/title>\n<meta name=\"description\" content=\"In cases where the history does not exist, we need additional explanations, exogenous information because the analysis of the time series of sales (or demand) is not sufficient. 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The approach must therefore be fleshed out with advanced algorithms using AI.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.azap.com\/en\/blog\/blog-category\/demand-forecast\/exogenous-data-supply-chain-optimize-forecasts\" \/>\n<meta property=\"og:site_name\" content=\"AZAP\" \/>\n<meta property=\"article:published_time\" content=\"2020-12-14T09:33:26+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-04-04T10:26:25+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.azap.com\/wp-content\/uploads\/2020\/12\/jobs_datascientist2.png\" \/>\n\t<meta property=\"og:image:width\" content=\"250\" \/>\n\t<meta property=\"og:image:height\" content=\"250\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Florian Cabanne\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@azapsupplychain\" \/>\n<meta name=\"twitter:site\" content=\"@azapsupplychain\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Florian Cabanne\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.azap.com\\\/en\\\/blog\\\/blog-category\\\/demand-forecast\\\/exogenous-data-supply-chain-optimize-forecasts#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.azap.com\\\/en\\\/blog\\\/blog-category\\\/demand-forecast\\\/exogenous-data-supply-chain-optimize-forecasts\"},\"author\":{\"name\":\"Florian Cabanne\",\"@id\":\"https:\\\/\\\/www.azap.com\\\/#\\\/schema\\\/person\\\/a0c3c06d7077d51ece05c1ac70327dc1\"},\"headline\":\"Exogenous data in Supply Chain : how to optimize your forecasts?\",\"datePublished\":\"2020-12-14T09:33:26+00:00\",\"dateModified\":\"2022-04-04T10:26:25+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.azap.com\\\/en\\\/blog\\\/blog-category\\\/demand-forecast\\\/exogenous-data-supply-chain-optimize-forecasts\"},\"wordCount\":568,\"publisher\":{\"@id\":\"https:\\\/\\\/www.azap.com\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.azap.com\\\/en\\\/blog\\\/blog-category\\\/demand-forecast\\\/exogenous-data-supply-chain-optimize-forecasts#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.azap.com\\\/wp-content\\\/uploads\\\/2020\\\/12\\\/jobs_datascientist2.png\",\"articleSection\":[\"demand forecast\",\"Innovation\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.azap.com\\\/en\\\/blog\\\/blog-category\\\/demand-forecast\\\/exogenous-data-supply-chain-optimize-forecasts\",\"url\":\"https:\\\/\\\/www.azap.com\\\/en\\\/blog\\\/blog-category\\\/demand-forecast\\\/exogenous-data-supply-chain-optimize-forecasts\",\"name\":\"Exogenous data in Supply Chain : how to optimize your forecasts? - AZAP\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.azap.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.azap.com\\\/en\\\/blog\\\/blog-category\\\/demand-forecast\\\/exogenous-data-supply-chain-optimize-forecasts#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.azap.com\\\/en\\\/blog\\\/blog-category\\\/demand-forecast\\\/exogenous-data-supply-chain-optimize-forecasts#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.azap.com\\\/wp-content\\\/uploads\\\/2020\\\/12\\\/jobs_datascientist2.png\",\"datePublished\":\"2020-12-14T09:33:26+00:00\",\"dateModified\":\"2022-04-04T10:26:25+00:00\",\"description\":\"In cases where the history does not exist, we need additional explanations, exogenous information because the analysis of the time series of sales (or demand) is not sufficient. 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