Businesses, regardless of their size or specialization, need to estimate and monitor demand for their goods and services in order to efficiently manage their operations.
Reducing uncertainty of demand can significantly help businesses keep inventory and operating costs low while improving customer satisfaction. Further, by knowing the approximate demand for goods and services, businesses can appropriately allocate their resources for manufacturing or stock the right products in the right quantities.
The process of estimating and monitoring customer demand is termed as "Demand planning". This paper discusses the significance of demand planning, illustrating how businesses can benefit from an estimation of demand for its goods and services.
It also gives an overview of common demand planning processes describing various steps in these processes.
Competitive supply chain management requires greater focus on demand planning than ever before. Forecasts must be accurate. Inventory must be optimized. Planning and execution must be carefully orchestrated across the supply chain.
Leading enterprises know that a forecast is not just a number. It’s a probability.
Demand Planning Process Audit and Diagnostics - Process audit examines the as-is process and compares it to the industry benchmarks to highlight areas of improvement. Typically, we do a rapid diagnostics by studying key Performance Measures, build them where necessary, and by interviewing key employees and stakeholders. The deliverable is an ROI analysis for the re-engineering proposition and bring to focus areas that yield maximum pay-offs to such an effort.
Performance Measurement Design - Design and develop a menu of performance metrics to your decision makers. We help your organization implement a holistic Performance measurement and incentive alignment process. The performance Metrics covered includes Forecast Error, Persistent Bias, Working Capital Performance, Customer Service Metrics, Transportation and Distribution Metrics.
Business Process Re-engineering. Helps you create value-enhancing business processes. The main practice areas are: Demand Planning and Sales Forecasting, Sales and Operations Planning (S&OP), Supply Chain Analytics, Account Based Forecasting and CPFR, and Supply Chain Readiness for Product Launch (Entry and Exit Strategies).