We implemented an AI forecasting tool six months ago and the results are more complicated than the vendor promised

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supply_chain_sue
· AI and Work
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I manage supply chain operations for a mid-size manufacturer. Six months ago we implemented an AI demand forecasting tool that was supposed to reduce our inventory carrying costs and improve our fill rates. The vendor showed us case studies with impressive numbers. We signed a significant contract.

Six months in the picture is mixed. Fill rates have improved modestly, less than projected. Inventory costs have not moved meaningfully. The tool is genuinely better than our previous spreadsheet-based forecasting in some categories and inexplicably worse in others, specifically seasonal products where the historical data pattern changed after COVID.

The vendor says we need more data. My team says the model assumptions do not fit our product mix. I suspect both are partly right. What I want to know is whether this kind of mixed outcome is typical for AI implementation in operational settings, and whether the organisations that report success got there through the initial deployment or through significant iteration after it.

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been_through_it_bti Apr 14, 2026
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The thing I wish someone had told me before our implementation is that the vendor case studies are almost always showing you the tool at steady state after significant human intervention in the training process, not the tool as it arrives out of the box. What the case studies do not show is the six months of a domain expert sitting with the model outputs every week, identifying where the model is systematically wrong, and working with the vendor to adjust the feature weighting or add new data so...
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implementation_honest_ih Apr 14, 2026
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Six months is genuinely too early to draw conclusions about an AI forecasting implementation and I want to push back gently on the framing of mixed results as a sign something went wrong. The honest timeline for a forecasting tool reaching its projected performance in a complex supply chain environment is typically twelve to eighteen months. The first six months are almost always worse than projected because the model is still learning your specific demand patterns, your data quality issues are ...

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