Demand Planning / Forecasting

Demand Planning Systems, Demand Forecasting, Scheduling, Execution, Collaborative Planning, Forecasting and Replenishment, Sales & Operations Planning(S&OP) and improving quality control functionality.

Demand Planning – the catalyst for higher performance

08-May-2017
Demand Planning – the catalyst for higher performance
Leading supply chain executives are contributing to business growth. Beyond operational excellence, they are uncovering growth opportunities all the while meeting customer service expectations. These leading executives have recognized demand planning as the cornerstone to a mature supply chain and have championed a demand planning practice within their respective organizations.

A demand planning practice can contribute to growth in two ways - by ensuring that dollars invested in inventory are providing an acceptable rate of return and by recognizing trends through the use of analytics.

A study by a company specializing in demand planning showed that for every 1% improvement in forecast accuracy, companies report a 1-2% drop in inventory levels.

All of this translates to big savings. So what are the foundational elements to establishing a demand planning practice? Let’s take a step back and look at the definition of planning which is “The process of setting goals, developing strategies, and outlining tasks and schedules to accomplish the goals.” Within the context of demand planning, the ultimate goal is a demand driven supply chain organization based on a network-based demand plan. A networkbased plan implies a connected and collaborative supply chain – at this point you have attained the highest level of maturity according to Gartner’s demand planning maturity matrix. There are many roads leading to a mature demand practice. At the end of the day, it is going to take the right people and the right processes supported by the right tools.

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