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.

Festive Season Blind Spot

Poor demand planning expected to drive massive errors over the festive shopping season

Festive Season Blind Spot
The festive season is the season for stuffing. Turkeys with delicious fillings, socks above the fireplace with presents and warehouses with enough stock to meet customer demand during this peak shopping time.

As retailers gear up for the key sales period before and after the big day, the global manufacturing industry faces the ultimate supply chain dilemma. Businesses don’t want to fail to meet orders. But nor do they want warehouses full of unsold stock tying up cash. How can they find the optimal balance?

Proceed with caution

Businesses generally lean towards the latter to mitigate the risk of stock-outs during periods of uncertainty. As you read this (and hopefully you’re sitting comfortably), $10 trillion worth of global inventory is stockpiled in depots, shops and warehouses all over the world. This level of safety stock could, in theory, provide two years’ worth of wages to the 2.4 billion people living in poverty across the world. It could also give manufacturers the opportunity to close shop or halt production for a whole year if consumption trends remained constant.

Too much of a good thing

One of the biggest drivers of oversupply is a phenomenon known as ‘incremental innovation,’ whereby a series of small improvements are brought to a company's existing products and services. While innovation across all sectors is undeniably the force behind the Fourth Industrial Revolution, it is also driving oversupply and wasteful production. 94% of new products land up in the tail (slowest moving items) in their first year and even fewer break out to become fast movers, according to the latest E2open Forecasting and Inventory Benchmark Study .

This rate of innovation is not only giving retailers and inventory planners headaches, it also has a significant environmental impact. The production of unused inventory requires more than 10 giga tons of carbon dioxide, equivalent to approximately 1.75 billion car-years, as well as 1.6 trillion cubic meters of water, which represents about 40% of annual global water consumption, which is bad for the planet, bad for reputation, and bad for profits.

Outdated systems driving forecast error

When it comes to managing busy retail periods, most inventory planners agree that preparation is key. But the study also found that oversupply is a result of inadequate demand planning. With 80% of unused stock resulting from forecasting errors, it’s clear that the traditional approach to demand planning, which relies on seasonal patterns and historical data sets to predict sales, belongs in the past. That’s why companies are increasingly investing in new technology like demand sensing to improve forecasting accuracy. However, as is often the case with many buzzwords, there is no universal agreement over the true meaning of ‘demand sensing’. So let’s explore one successful interpretation.

Here is a simple but useful analogy. Ask a planner using a traditional demand planning approach to determine how much milk to stock at a grocery store and they will look at how many cartons were sold during the same week over the previous couple of years. Demand sensing, on the other hand, looks at how much milk is already in the refrigerator, and factors in variables such as increased consumption due to university students being home for the holidays; thus, reducing demand near campus and increasing it near places of residence.

Rethinking what’s possible in the pursuit of planning excellence

Demand sensing is particularly useful when it comes to planning for major events like Christmas, as it leverages all the benefits of Artificial Intelligence, Machine Learning and real-time internal and external data analysis. This allows retailers and manufacturers to forecast near-term daily demand, taking into account all available current information on inventory levels, recent shipments, open orders, customer ordering behaviour and any other factors that could affect demand.

As a result, over the last five years, companies using E2open smart applications have consistently enjoyed a 53% reduction in extreme forecasting errors. For example, New York-based beauty company Avon was faced with the challenge of forecasting and pre-building inventory several months prior to the start of a campaign, and only having several weeks to respond to real demand, which was often drastically different. They partnered with E2open to implement a supply chain solution that replaced inefficient systems, reduced inventory and improved profitability. With the E2open smart applications, processes that used to take an entire calendar year now happen in a matter of days and Avon now has complete visibility across their end-to-end supply chain resulting in better decision making. With CEOs increasingly turning to supply chain to drive digital transformation, differentiation and profitability, accuracy matters more than ever. Ultimately, the quality of every business decision ties back to the quality of one or more of its forecasts.

Four Things You Probably Didn’t Know About Inventory Planning and Sustainability

Four ways smart supply chain planning directly impacts sustainability initiatives

Haribo Sweets Supply Chain Success

Sweet-maker reduces wastage and obsolete stock by 5% in less than two years after implementing FuturMaster supply chain technology

FuturMaster launching a new AI-powered forecasting software

The new solution will help manufacturers and retailers launch new products more successfully

ClickSoftware Named a Leader in IDC MarketScape for Worldwide Mobile Field Force Management Solutions

ClickSoftware recognized for its dynamic schedule optimization technology

Construction Sector Giant Saint-Gobain Partners With RELEX in Nordic and Baltic Regions

Uses Unified Retail Planning Technology to Improve Forecasting and Replenishment in DCs and Stores

Pet food manufacturer snaps up FuturMaster supply chain technology across globe

Royal Canin has started to roll-out FuturMaster’s cloud-based demand planning software as part of a supply chain initiative

Poultry producer Ingham’s implements FuturMaster software to pluck demand

Ingham has implemented FuturMaster’s demand planning software to help more accurately forecast

E2open’s Supply Chain Workflows to Power Billions of Connected Mobile Devices

Continued Platform Expansion Includes Mobile Enhancements with Order Management, Improved Demand Workflows and New Demand Planning

Hancocks Turns to Logility’s Halo Platform for Supply Chain Analytics to Support Growth

Iconic New Zealand Beverage Company Drawn to Halo’s Industry-Specific Functionality and Excellent Customer Service

JDA Introduces Luminate Demand Edge to Power Self-Learning, Autonomous Demand Forecasts

SaaS-based solution extends and enhances JDA’s existing demand planning solutions by leveraging leading AI/ML capabilities from Blue Yonder

Oliver Wight and Ernst & Young LLP collaborate to address enterprises’ planning challenges

Alliance focuses on addressing business planning challenges in the face of rising customer demands and evolving market landscape

World’s best-selling beer taps into FuturMaster technology to streamline supply chain

China Resources Snow Breweries has started to implement FuturMaster demand planning software to help increase profitability and customer service

Underwear apparel company Hanes rolls out FuturMaster demand planning software to boost global supply chain

HanesBrands is deploying a standardised IT system to help with supply and demand forecasting in more than twenty-five countries

Logility Sponsored Research Reveals Demand Segmentation Drives Significant Forecast Accuracy

Logility today announced the availability of the report, Demand Segmentation Users are Better Equipped to Manage their Channel Challenges

Neovia is Building the Future of Its Supply Chain with DynaSys Cloud DSCP

DynaSys today announced that Neovia selected the DynaSys Cloud DSCP solution, including the Demand Planning

Griffith Foods Expands Global Roll-out of Logility

Logility, Inc. announced Griffith Foods is expanding its use of Logility Voyager Solutions™ to more regions around the world

AkzoNobel Specialty Chemicals Achieves a One-Plan Harmonized S&OP Process With Arkieva

The harmonized planning system delivers a single-source planning process; providing AkzoNobel Specialty Chemicals with real-time visibility.

UK olive and continental food supplier preps supply chain with Futurmaster software

Products packaged and delivered daily range from continental meats, chilled olives, antipasti and tapas to fresh pasta and seasonal snacks.

Logility Acquires Halo Business Intelligence to Expand Advanced Analytics

Rapid Insights Driven by Artificial Intelligence and Machine Learning Turn Data into Action

Kingston Technology Chooses Logility’s Supply Chain Solutions for its HyperX Gaming Division

Award-winning Software Solution Tracks, Plans & Optimizes Supply Chain Planning for Leading Gaming Peripherals Division

LLamasoft Demand Guru Helps Companies to Accurately Predict and Investigate Key Drivers of Demand

Advanced Demand Modeling Solution Speeds Analysis and Understanding of Market Demand Drivers, Improving Decision-Making and Overall SC Design

Infor and Planixs Partner to Offer Banking and HCM Solutions in the Cloud

Leading Technology Providers Collaborate to Deliver Extended Software Capabilities to Customers

UK bread manufacturer Warburtons boosts supply chain with FuturMaster

Warburtons prides itself on the freshness of its bread, manufactured and delivered daily to over 18,500 retailers.

OM Partners positioned as a leader in the Gartner Magic Quadrant for S&OP

OM Partners has been placed as a leader in the Magic Quadrant for Sales and Operations Planning Systems of Differentiation by Gartner

Solteq has acquired share majority of Analyteq Oy

Stock replenishment analytics to support total solutions for commerce

Fox’s Biscuits streamlines production with FuturMaster SC technology

Fox’s, the £250m UK biscuit company, has improved its forecasting, manufacturing and promotions planning practices

WHSmith Travel to Implement RELEX’s Supply Chain Optimisation Technology

WHSmith Travel aims to increase availability and better manage waste through improved stock forecasting and replenishment with RELEX Solutions

Direct Wines Better Predicts Customer Demand with Infor

Leading Wine Merchant Implements Cloud Applications to Align Marketing, Merchandising and Supply Chain Operations

Infineum Selects Logility to Optimize Supply Chain Performance

Leading Global Manufacturer Set to Boost Supply Chain Performance with Logility’s Multi-Echelon Inventory Optimization

Laying the Foundation for Advanced Supply Chain Planning Capabilities in the Food and Beverage Industry

As a former Director of Supply Chain Management for a large multi-channel food manufacturer I experienced first-hand the variety of challenging problems

French rail company SNCF deploys FuturMaster solution to optimise the maintenance of its trains

FuturMaster’s forecasting technology improves regulation of spare parts for rolling stocks

Rules and controls to achieve permanent perfection

DISKOVER gives ERP systems a lasting boost

Lectra’s latest fashion PLM solution reaps highest score in industry expert evaluation

Extended scope and strides forward in key functionalities, including material forecasting, deliver number one industry ranking for Lectra Fashion PLM in WhichPLM benchmark studyudy

Food Colouring Specialist Boosts Supply Chain Performance with Logility

Sensient Colors has achieved significant benefits since deploying Logility Voyager Solutions™

Pernod Ricard Drinks to Better Demand Forecasts with Infor

Pernod Ricard, owner of brands such as Absolut, Campo Viejo, Malibu, Jameson and Chivas Regal, says it has made substantial improvements in demand forecast accuracy using Infor Demand Planning.

Cargobase Launches New ‘Lane-Contracts’ Feature

Cargobase, an online platform for ad hoc freight, has successfully launched a much-requested feature by Fortune 500 multinationals in the semiconductor and electronics industries.

CargoPlanner Launches Third Module in Breakbulk Optimising Software

CargoPlanner in Sweden is now launching the third module in what it calls its “state-of-the-art” online software for planning and optimizing breakbulk and project cargoes in ships. Selected For Ports Congestion Reduction Scheme, the leading software solution to automate matchbacks in Europe and North America, has been selected by De Verkeersonderneming to take part in the inaugural Marktplaats Voor Logistiek program

What Is Your Supply Chain Planning Score?

Got five minutes? That’s all the time it takes – according to Demand Solutions

Meira Drinks to Better Demand and Factory Management with Infor

Infor M3 and Infor Demand Planning Set to Help Coffee and Spice Leader Grow

Leading Analyst Firm Publishes White Paper on How IoT-Enabled Analytic Applications Will Revolutionize Supply Chain Planning and Execution

For the first time, complex global organizations can purchase solutions that offer unprecedented end-to-end supply chain visibility

Imperago Workforce Design solution provides optimum shift patterns to support staff wellbeing and business needs in Logistics sector

Totally new class of software solution helps businesses meet ever changing legislative, financial and operational challenges of Logistics and Warehouse workforce management while significantly reducing overtime costs

Land O’Lakes Selects Terra Technology Multi-Enterprise Demand Sensing

Land O’Lakes, Inc., one of America's premier agribusiness and food companies, has purchased Terra Technology’s Multi-Enterprise Demand Sensing software-as-a-service solution.

Infor Announces Demand+ to Help Accelerate Supply Chain Forecasting

Comprehensive Demand Planning Designed to Help Manufacturers and Distributors Improve Forecasting, Boost Collaboration and Implement More Efficient Practices

Slotting 4.0: Automated slotting with inconsoSLM

With the slotting management tool inconsoSLM, inconso presents a ready-to-use software solution for optimizing the warehouse organization.

Access offers a blueprint for inventory reduction

Keeping control of inventory has probably never been harder.

Highland Spring Group Invests in Customer Service with Infor

Infor Demand Planning to Help Achieve Double Digit Demand Forecast Accuracy Improvements

Logility Names New President

H. Allan Dow Promoted to President and Geoffrey W. Cobleigh Promoted to Senior Vice President of Sales for the Americas

An S&OP Q&A with SCM World’s Kevin O’Marah

Logility's Karin Bursa recently sat down with Kevin O’Marah, Chief Content Officer at SCM World, to discuss one of the hottest topics in supply chain—sales and operations planning (S&OP). From top drivers to best practices and benefits, a lot of ground was covered in this two part post.

Kramp Orchestrates Order Fulfilment across European Wholesale Operation with Manhattan Omni-Channel Solutions

Kramp Groep, one of Europe’s largest technical wholesalers operating as a one stop supplier of spare parts, technical services and business solutions, is implementing Manhattan Associates, Inc.