Delivering the right quantities, to the right places and on time, based on the forecast of consumer demand. That is what Demand Planning is all about. Achieving the best customer service while reducing costs — i.e., avoiding excess inventory — and increasing profits.
However, this is not easy in an ever-changing world. Businesses have to navigate uncertainty, conquer complexity and overcome risks on a daily basis. And that’s where Demand Planning solutions play an essential role.
Given the importance of an accurate forecast, the BOSS Magazine named demand planning software the number 3 trend in Supply Chain to watch out for in the upcoming 2024. And stay tuned with AI and Process Intelligence technologies.
You’ve learned the importance of integrating a demand planning cycle and consolidating your clean data in one place. But once you’ve done this, you need to take the next step. Ensuring seamless collaboration among different business functions is fundamental to your demand strategy and, in the end, to meet customer demands.
Collaborating for a Successful Demand Review
A demand review allows you to understand if different functions of your business are working together effectively. Collaboration tools grant you the ability to use your judgment at every step of the process. Thus, you will have the ability to gather valuable insights from all parts of the business.
Different functions often have different priorities. This can cause friction. However, teamwork enhances real-time cohesion among employees. It also provides them with the perfect environment to use data at the same time and in a dynamic way.
Now, we have stated how essential it is to create a collaborative work environment. But how is a business set up to create a successful collaboration and demand review process? Below are some of the main keys to ensure you put in place a successful process.
Language Can’t Be a Barrier
For a demand planning process to be effective, it is fundamental that everyone speaks the same “language”. Using the same volume measurements, currency, values, and wording throughout the matrix is important. This avoids data flaws and inconsistencies.
Geography cannot and should not limit collaboration. By agreeing on a consistent set of criteria, neither time zones nor language should be a barrier to your demand planning. Demand planners and supply chain managers are using the same data, in the same way, no matter where they are located. Otherwise, it could affect the whole global supply chain planning and impact your business.
In an ideal world, your solution should allow for collaboration with distributors, third-party logistic providers and contract manufacturers. Each of these have a role to play in your most important mission: satisfying customer demand consistently and profitably.
Information on the Go
Being able to adapt and respond in real-time is essential when developing a demand plan. Thus, accessing your information on the go is crucial as well. You cannot depend only on a desktop computer. Mobility is a must when choosing a software framework.
Mobility facilitates:
- Getting real-time alerts sent to your device, reducing lead times to respond
- Accessing information at your fingertips
- Using the camera to scan a barcode to identify a package immediately and update its location
When you prioritize collaboration and demand review, you can adapt to disruptions in real-time. This grants you the advantage of organizing across locations regardless of stationary technology.
In the end, a robust demand planning process guarantees the success of your business. How? By saving you valuable resources like time, money and potential setbacks.
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