Demand Management | Sales Forecasting
Do you want to give your company a competitive edge?
Need to improve your demand management process?
How to increase sales revenue and EBIT for your company?
A number of organisations are beginning to understand the importance of having an effective demand management process across their business and supply base. Implemented and maintained correctly, it can create a competitive edge through a more responsive and agile supply chain that achieves high levels of customer service and delivers solid financial performance for your business.
Supply chain agility and response is achieved by smoothing demand by removing unnecessary process waste that hinders your supply chain delivering effective service levels to meet varying customer demands. This involves developing and implementing the right business policies and procedures which are underpinned by an awareness of the current constraints, capacities and cost to serve of your supply chain.
For information about our assessments, Click this link
Our approach to Demand Management
A Turn Key Solution will develop and implement a rules based demand management process for your organisation which will allow retailers, manufacturers and wholesalers to become more profitable by being able to develop more accurate demand data.
By working on the drivers that influence the demand management process, we are able to minimise variability of demand by creating a more responsive and cohesive supply chain through the application of statistical forecasting techniques at item, brand, category or business level.
Our toolkit will also provide our customers and their suppliers with greater visibility across the supply chain. This creates the opportunity for making timely and informed decisions on reducing operational costs and inventory investment costs without compromising customer service levels.
Demand management components
. |
open to buy The open to buy process is the starting point of your demand management process for a typical retail organisation while other organisations in manufacturing, wholesale etc may use a variant known as an inventory policy or purchase plan which is developed top down or bottom up. The sales representatives manage this process and develop a first cut forecast based on their knowledge of markets, clients etc. |
|
marketing input Depending upon the size of the organisation, some global companies adopt an allocation method which is a % based method for your region, while other businesses may develop their demand numbers based on their in depth knowledge of the local market. |
|
sales input Sales representatives who work closely with their clients are able to develop a raw set of demand numbers which are loaded into the demand management software. Working with the demand planner, the integrity of the forecast will be validated and a final set locked in based on agreed parameters, volumes and timing to market. |
|
customer input Depending upon the type of customer your business supports, some businesses are able to collaborate with their customers and work towards developing their requirements based on their specific industry or market. Other businesses which service mass market customers such as retail may adopt different methods through forecasting. |
|
forecasting Based on the data which may consist of standard sku's, promotional skus, new skus and slow moving skus, statistical forecast analysis is required to aid in smoothing the demand for product. There are a range of sales forecasting methods that can be applied. Read more» |
|
master file and stock integrity The inventory item master file, bills of materials, work centre routings, cost files etc. All need to have the highest level of data integrity along with stock accuracy at an sku level. Poor data integrity can result in wrong buy decisions creating excess inventory or not enough inventory. Either way there is an added cost to fix the problem. |
|
merchandising An aggregate assortment plan needs to be developed which is based on all selling location layouts or range plans. This will include provision for new product launches, promotional items, gift with purchase, purchase with purchase along with marketing collateral such as point of sale, displays etc that support the final product presenation and sale. |
Select a Supply Chain and Logistics Assessment that identifies real improvement.
We offer a range of assessments that are tailored to specific functions within your oganisation that require review. Depending on the scope of works or the scale of your organisation, our assessments are typically completed within 2 weeks of commencement for single site entities. Reference sites available on request.
