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If “the forecast is always wrong,” is improving forecast accuracy even the solution to our demandplanning woes? Gaining a better handle on demand is compelling, especially when recent sales history is often no longer a good predictor. So what can we do to make models more useful? A forecast is an input, not a decision.
The waste included: Negative Forecast Value Added (FVA) in demandplanning. In 85% of organizations that I work with, conventional demandplanning processes increase forecast error. This is amplified across the supply chain into an exponential impact on inventory and planned orders for manufacturing.
Anyone who has done demandplanning knows it is extremely complex, with forecasting challenges and rapidly shifting consumer demand, often exacerbated by seasonality, new product introductions, promotions, and myriad causal factors (e.g. The forecast generated by these algorithms degrades as the demand patterns evolve over time.
Do Set Clear KPIs and Governance Structures : Establish transparent metrics for sales, coverage, and service levels. Regular reviews and joint business planning foster accountability and trust. Do Embrace Technology and Data : Use real-time data for demand forecasting, inventory management, and route optimization.
Descriptive, predictive and prescriptive analytics should be combined to optimize your demandplanning processes. Better forecasting and demandplanning processes, which in the past had been beset by low accuracy and poor adoption, were a priority. The A nalytics to B oost your DemandPlanning.
Good forecasting leads to good demandplanning —and good demandplanning means better profitability. That’s why it’s essential to be sure you’re equipping your organization with the right demandplanning software. Here are our answers to some of the most common questions about demandplanning software.
Small companies outperform large companies, and the marquee customers of major supply chain planning technology providers underperform. The issue is that when companies optimize functional metrics, they throw the supply chain out of balance and sub-optimize value. Supply chain leaders love bright and shiny objects.
This article is a shortened version of themes & topics discussed in our newest DemandPlanning Core White Paper. Demandplanning has long been a requisite of supply chain management, but in a modern, high-speed environment, it’s become something more: a strategic lever for agility, and competitive advantage.
ARC defines supply chain planning (SCP) products as including supply planning, demandplanning/inventory optimization, and network planning. Network planning solutions include supply chain design, integrated business planning, and end-to-end supply chain analytics. This would be a three-way tradeoff.
I also continued to work on the manuscript for the book Metrics That Matter to publish in the fall of 2014. So, I am going to focus here and share my answer: Demand sensing is the application of analytic technologies to detect short-term patterns in channel data and translate it into distribution requirements.
Stakeholders who care about forecasting in demandplanning care about accuracy, and usually will not accept a new forecasting method unless it is rigorously validated against known forecasting benchmarks with proven accuracy. In this way, forecast accuracy trends can be leveraged in adjusting demandplanning.
Image: iStock/JuSun June 18, 2025 Helen Atkinson, Managing Editor “The future is already here; it’s just not evenly distributed,” wrote William Gibson in his 1984 novel Neuromancer.
A planner could ask the SCP engine to achieve 95% service, with CO2 emissions under of under a million metric tons at a given factory in the coming month. Medium-term planning – known as tactical planning. This is typically monthly planning are plans are created for the next 12 to 24 months. No plan is.
Want to streamline your distribution operations? The field of distribution operations is rapidly evolving with the rise of eCommerce, with fierce competition between distributors. A well-designed Distribution Operations strategy can help businesses optimize their supply chain, reduce costs, and improve customer satisfaction.
The goods flow through 2 import centers, 14 strategically located distribution centers in North America, 66 final mile shipping hubs, and nearly 1,700 branch locations. million square feet in 10 distribution centers and 35 million square feet across its branch network. The company has shown sustained improvement on this metric.
Sense quantifiable changes : The resident applications, specifically, demandplanning, supply planning, and inventory planning all have key variables that contribute to a network model. This might be subtle changes in distribution to customer assignments or changes in supplier quantities.
Price Index Elasticity for Pricing and Promotion Planning: As we are going through global price inflation and facing a recession, consumers and businesses are becoming more conscious of their spending and looking to minimize costs when shopping for goods and services. These metrics can also be used in inventory planning decisions.
SCM is focused on efficiency, throughput, and resilience across a much wider operational footprint and requires coordination between manufacturing, logistics and supply chain, and demandplanning teams to ensure timely fulfillment and quality assurance. What KPIs help track alignment between procurement and supply chain?
Sense quantifiable changes : The resident applications, specifically, demandplanning, supply planning, and inventory planning all have key variables that contribute to a network model. This might be subtle changes in distribution to customer assignments or changes in supplier quantities.
The software company earns Leadership recognition in supply chain planning and demandplanning across regions. BOSTON – January 15, 2023 – ToolsGroup, a global leader in retail and supply chain planning and optimization software, is proud to be recognized as a Leader in five separate G2 Winter 2024 reports.
(Revenue management is siloed and distinct from demand management, while Transportation Management (TMS) has nothing in common with Distribution Requirements Planning (DRP). The answer is not as simple as connecting Customer Relationship Management (CRM) to Advanced Planning (APS). Lack of aligned metrics.
Poorly implemented demandplanning software mis-forecasts demand for branded sneakers. Demandplanning systems unable to forecast demand-slowing associated with economic meltdown. A few of the most infamous are listed below. The common thread? 100M in lost sales and 20% drop in stock price in one year.
According to Ben, who oversees Chainalytics’s Integrated Demand and Supply Planning practice (which includes their DemandPlanning Intelligence Consortium), many companies take last year's forecast accuracy metric and simply add a few percentage points to establish the coming year’s goals.
Cardinal Health’s senior vice president of global logistics, said of their implementation of the Kinaxis’ supply chain planning (SCP) solution, “I was scared! Pete Bennett, and his co-presenter, Mary Byrne, the vice president of supply and demandplanning, spoke during a presentation at Kinaxis’ user conference Kinexions.
These emissions span every link in the supply chain, from upstream farming to downstream distribution, creating a complex and often fragmented data landscape.Yet more than half of companies still rely on spreadsheets and manual tools to navigate this complexity. These outdated methods are inefficient, error-prone, and difficult to scale.
The company sells directly and through channels; they have an extensive distribution network to provide postproduction processing, service, distribution, and sales support. The idea that a plan is “multi-dimensional” reflects the dimensions of customer demand, capacity, and products.
Over my 25+ year supply chain career I have worked for several distribution-intensive companies and every single one of them had a focus on improving forecast accuracy. Achieving a high SKU level forecast accuracy is a top goal for supply chain planning teams regardless of industry, size, location, etc.
For Greater Product Performance Visibility and Improved Sales & DemandPlanning Consumer Packaged Goods (CPG) manufacturers operate in an increasingly competitive environment, where the ability to access and analyze timely, accurate data can make or break a company’s success.
” At the other end of the continuum is the argument that “ Forecast error is the most important metric to improve.” I do believe in demandplanning, but most companies overstate forecast improvements. Many companies implemented demand management processes as a technology project. Everyone has a bias.
Available to Promise (ATP) Available to Promise (ATP) is a real-time inventory management metric that tells you how much of a product you can promise to customers without overcommitting. This KPI is especially valuable in retail, eCommerce, and B2B distribution. Why is Average Time to Sell important? Why is GMROI important?
Maintaining an agile and transparent flow of information allows all parties to be aware of inventory needs and helps prevent overstocking or understocking of products, even amid fluctuating periods of consumer demand. However, something basic is a good choice of method of transport for the distribution process.
MILAN and BOSTON – June 6, 2023 – ToolsGroup , a global leader in retail and supply chain planning and optimization software, is thrilled to announce it has been selected by D.I.MAR, an Italian leader in the frozen food industry, to heighten its supply chain performance, bolster supplier relationships, and drive enhanced business results.
For me the story is not about the average; instead, I feel that the research insights lie in data distribution. There are more outliers in the inventory and demandplanning responses creating longer ‘whiskers.’ Figure 1: Overall Satisfaction with Planning Solutions. The industry is stuck.
The larger the organization, the more tension with conflicting functional metrics making decisions more difficult. Note in Figure 1 the gaps from recent research between supply chain planning and manufacturing, logistics, and sales. Demand continues to be uneven and unpredictable. Consumer spending remains above 2019 levels.
In the Supply Chain Metrics that Matter table, we can clearly see that “operating margin” and “inventory turns” matter to public financial performance. Each faces four years of deterioration on this important supply chain metric. We used to look at damage in distribution centers one time per month.
On-time-in-full performance of distribution centers. Customer Satisfaction scores side by side with the service level and availability metrics. Asena Yosun Denizeri is the Head of Retail solutions at Solvoyo and has over 20 years of experience in implementing Planning, Pricing, and Optimization solutions in global companies in the U.S.
As Dritz noted, Collaboration with distribution partners and manufacturers can drive tremendous value by aligning core competencies and sharing demandplans. Key collaborative practices include: DemandPlanning: Share forecasts with upstream partners to ensure readiness. Heres a four-step roadmap: 1.
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The goal of an SCP implementation was to effectively balance demand and supply. Here, Mars Wrigley leveraged using Kinaxis for both demand and supply planning. Kinaxis is a proponent of using network planners for both supply and demandplanning rather than having the planners operate in silos.
The next step was getting a feedback loop from the WMS system back to the planning system to create OTIF (on-time-in-full) metrics on supplier deliveries so the planning system could adjust recommendations based on the real-time receipt information. Step 4 – Closing the Loop and Getting Real-time Visibility. and Europe.
Supply Chain Finance & Revenue Management Lawyer for 737 Crash Victim Families Slams DOJ Deal with Boeing Quality & Metrics DHL Express Canada Workers on Strike Following Lockout Last Mile Delivery U.S. Featured Product Popular Stories Watch: Why Choose FTZs to Mitigate Tariffs?
The onset of COVID and the rapidly changing environment of a pandemic-hit world has meant demandplanning has become more difficult – and as a result, more critical – than ever. What is demandplanning? Demandplanning is the process of predicting what customer demand will be for a certain product.
Supply Chain Finance & Revenue Management Lawyer for 737 Crash Victim Families Slams DOJ Deal with Boeing Quality & Metrics U.S. Featured Product Popular Stories Watch: Why Choose FTZs to Mitigate Tariffs?
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