Demand Planning / Forecasting

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Logility Sponsored Research Reveals Demand Segmentation Drives Significant Forecast Accuracy

19-Jun-2018
Karin Bursa (pictured)
Executive Vice President, Logility
Logility Sponsored Research Reveals Demand Segmentation Drives Significant Forecast Accuracy
Logility, Inc., a leading provider of collaborative supply chain optimization and advanced retail planning solutions, today announced the availability of the report, Demand Segmentation Users are Better Equipped to Manage their Channel Challenges. The report, authored by Bryan Ball, vice president and group director, Aberdeen, and sponsored by Logility, examines the adoption of demand segmentation and its benefits in tackling demand volatility and channel shifts.

The ability to research, compare and purchase products across multiple channels at any time creates additional complexity that can challenge a supply chain organizations’ ability to generate an accurate forecast. Aberdeen conducted research to identify the strategies Best-in-Class companies employ to turn these challenges into opportunities for differentiation and growth. The research found demand segmentation is a key capability that sets leading supply chains apart. Highlights include:
  • Demand segmentation users show a 20 percentage point customer service level advantage versus non-users 
  • Best-in-Class companies realize a 67 percent higher forecast accuracy rate at the family and SKU level 
  • Demand segmentation users are 57 percent more likely to optimize inventory and service policies to maximize cash flow and profitability 

“Creating a demand-driven supply chain starts with understanding who your customer is and developing the strategy to profitably serve them at the time, place and price they are ready to buy,” said Karin Bursa, executive vice president, Logility. “This research from Aberdeen highlights the importance of demand segmentation to identify and profitably satisfy specific market, channel and customer needs. The advanced analytics and optimization capabilities in Logility Voyager Solutions™ help companies develop robust segmentation strategies to prioritize supply chain operations to cost-effectively satisfy service level goals increase margin contribution.”

To download your complimentary copy of the report, visit: www.logility.com/demand-segmentation.