Predicting the Unpredictable Every client believes their demand cannot be predicted. After all, customers don't know what is going on in their end-to-end supply chain with the global supply chain chaos. Sales teams are optimistic and either forecast too much, hoping Operations will produce and store "just in case" [...]
2021 was plagued with shortages. As discussed in clients’ demand planning/ forecasting meetings, history is not representative of the future. In one example, the client experienced material shortages and couldn’t sell what customers requested, and so carrying that forecast into the New Year would deliberately carry that issue into 2022.
Demand planning is critically important to inventory management success. Drive better inventory control, cash flow, and profitability
Since forecasting can deliver significant benefits with increased levels of service, inventory turnover and margin improvement, the question that inevitably arises is whether it makes sense to purchase a forecasting or demand planning system.
According to Gartner statistics, significant bottom line results can occur with just a 1% improvement in forecast accuracy. In fact, there are staggering improvements in lead time, inventory reduction and margins, so why not at least explore the idea?
When clients decide to upgrade ERP, they also look at CRM (customer relationship management) because it makes sense to align the technology infrastructure into a common platform that will be fully integrated and scalable.
No matter the position of my client (typically a CEO, Owner, CFO, General Manager or Board member), he/she is interested in increasing demand, and the project we are brought in to focus on relates to increasing demand, either directly or indirectly.
In listening to the UGG founder, Brian Smith talk through his trials and tribulations in developing the amazing UGG brand, a few themes emerged.
In supply chain circles, there are lots of exciting concepts to discuss and debate such as lean, master scheduling, theory of constraints and many more; however, we have found that our most successful clients start with the customer!
SIOP guides strategic forecasting to determine the optimal horizon for planning and future-proofing your supply chain operations.
