Singular Intelligence worked with Cranswick, a leading UK food producer and Sainsbury, a supermarket on their pork supply chain supply and demand imbalances as part of the Made Smarter Innovation | Digital Supply Chain Hub programme.
Supply and demand imbalances occur when the quantity of goods or services supplied in a market does not match the quantity of goods or services demanded by buyers in that market. These imbalances can lead to shortages or surpluses, which can have a significant impact on the price and availability of the goods or services.
In a situation where demand exceeds supply, a shortage occurs, which means that the quantity of goods or services demanded by buyers is greater than the quantity of goods or services supplied by sellers. This can result in higher prices, as sellers may raise their prices to take advantage of the increased demand. In extreme cases, a shortage can lead to rationing or allocation of the goods or services, which can cause frustration and dissatisfaction among buyers.
On the other hand, if supply exceeds demand, a surplus occurs, which means that the quantity of goods or services supplied by sellers is greater than the quantity of goods or services demanded by buyers. This can result in lower prices, as sellers may lower their prices to clear their inventory. In extreme cases, a surplus can lead to excess inventory and waste, which can be costly for sellers.
Supply and demand imbalances can be caused by a variety of factors, such as changes in consumer preferences, disruptions in production or supply chains, government policies, or shifts in the economy. Businesses and policymakers must carefully monitor supply and demand dynamics in order to identify and address imbalances in a timely manner, to avoid disruptions and to ensure that goods and services are efficiently allocated to those who need them.
In a food supply chain, these imbalances can be especially tricky due to the shelf life of the product. Watch the video to learn about how Singular Intelligence uses AI to overcome some of these.