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Adopting AI & ML, Kargo Introduces Demand Planning to Enhance Sustainable Supply Chain & Logistics


Kargo Demand Planning, the latest technology from Kargo Technologies, offers innovative solutions for businesses in Indonesia by optimizing logistics operations and creating a sustainable supply chain. By leveraging machine learning and predictive analysis, Kargo Demand Planning helps shippers and transporters deal with demand volatility, reduce costs and increase profit margins.

Traditional Approach vs. Machine Learning Approach in Supply Chain

Traditionally, businesses in Indonesia have relied on passive prediction methods, such as historical sales data, to forecast demand. However, this approach often fails to account for uncertainties and is unable to model various scenarios, such as changes in market trends. Kargo Demand Planning utilizes machine learning algorithms that are trained with Kargo data that have operated for 4 years in first, mid, to last mile shipments. In addition, this machine also incorporates external data as learning material such as market trends, gas prices, seasonality of transporter (transporter) capacity, variations in types of shipments for international trade (export-import), and various public data sources in Indonesia.

Benefits for Shipper and Transporter

By implementing Kargo Demand Planning, it provides many benefits for both shippers and transporters. Specifically, shippers are able to gain insight into high-demand delivery periods and locations which allows for more efficient delivery planning. Not only that, through the transporter profiling feature, users can also see the performance for each transporter to help determine a more cost-effective transporter with superior performance.

On the one hand, transporters are also able to derive several benefits from this technology, such as route optimization based on the predicted number of shipments for a given route, which leads to increased efficiency. By knowing the seasonal predictions of shipping and analyzing existing routes, it can help transporters to set more optimal prices based on busy and quiet shipping seasons. Not only that, transporters can also manage truck utilization better with the fulfillment rate analysis feature.

In general, both shippers and transporters can drive supply chain efficiency to ensure the continuity of customer fulfillment & satisfaction levels as experienced by the Kargo team itself.

"Inconsistent market supply means Kargo team works tirelessly to maintain high fulfillment rate & customer satisfaction. By using demand planning solutions, we now have 100% visibility of suitable carriers per route. This instantly saves thousands hours previously spent matching supply and demand!"

Marselinus Erick, VP of Operations, Kargo Technologies

Main Features of Kargo Demand Planning

Kargo Demand Planning offers a full range of features, including seasonal and trend analysis, carrier segmentation, fleet profiles, route analysis, fulfillment rate patterns, cohort analysis and budget estimation based on delivery probabilities across different carriers and routes. These features enable businesses to make data-driven decisions, optimize resources, and build a resilient supply chain.

Proven Accuracy and Data-Driven Results

The Kargo data team has trained machine learning models using more than 10 million rows of data and 26 different metrics. This model can produce accurate predictions with only 7 days of delivery data. This accuracy empowers businesses to make informed decisions and plan for the future effectively.

Build a Resilient Supply Chain with Kargo

For leaders and visionaries who are ready to create sustainable supply chains and optimize logistics, Kargo is your partner of choice. Our dedicated team is ready to help you build an efficient and robust logistics network. Contact our team today to learn more about Kargo Demand Prediction and its transformative impact on your operations.

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