Key to S&OP Success: Move from Forecasting to Integrated Demand Management

The Problem: Forecast Accuracy Remains a Challenge

No One Trusts the Forecast
The importance of an accurate demand forecast to drive an agile and efficient supply chain is obvious to any supply chain practitioner.

If you are like most global manufacturing companies, you have implemented a first generation Demand Planning system - SAP, Oracle, JDA, et al. - to support your supply chain planning/S&OP processes.

However, forecast accuracy remains a challenge, along with the resulting alignment challenges between sales, finance and supply chain operations.

The questions demand planning organizations and their IT counterparts are asking are:

• Why have legacy demand planning systems not delivered?
• What are the capabilities needed to drive an effective demand planning process?
• Can it be done in a way that leverages planning infrastructure investments already made?

“Planning” Is Not Done In Demand Planning Systems
Reality in most companies is that 80% of the heavy lifting for the demand planning process is done in spreadsheets.

Move from Forecasting to Integrated Demand Management

Forecast Ownership Challenges, and Why Sales Adoption Is Key
Sales organizations are on the front end of the supply chain. They see risks and opportunities emerging in the market place earlier than the rest of the organization.

In order to respond rapidly, it is critical for a supply chain organizations and the S&OP process to get these inputs.

In order to truly drive sales adoption and accountability of sales to the demand plan, the solution must truly help sales with achieving their primary goal - Selling.