When trying to forecast demand for the future, it is important to understand the variability in the underlying dataset.
Supply chain planning projects are often approved on the back of the promise of lower inventory levels. In a recent conversation, I was asked a more nuanced question: whether right-sizing inventory via better supply chain planning improves earnings before interest, tax, depreciation, and amortization (EBITDA). This blog tries to address this question.
Should we combine the positive numbers and the negative numbers as we approach the essential business of forecasting future demand? Let us think this through.
Use this comprehensive guide to get started with your product-customer demand segmentation analysis process.
How to use demand planning statistical models to enhance the value of your sales input during the forecasting process.
A guide on how to improve material planning using a more detailed volume allocation of customer orders. It is a common business practice to write up yearly contracts for the volume. Very often, this is done to extend volume discounts to the customer. That is obviously a benefit to the customer. The supplier benefits by knowing how much to budget for in terms of production through the year. They can also count on the revenue coming in.
Demand Planning directly affects the business financial plan, pricing, capex decisions, customer segmentation and resource allocation. Considering the criticality and implication of this process, Demand Planners and Managers need to continually evaluate their current Demand Planning process and ensure that the Demand Plan generated is holistic, relevant and timely.
What's the effect of customer order lead time in inventory management and safety stock calculations?
How global businesses can build a collaborative demand planning process
Here are some guidelines on selecting the right statistical forecasting methods for your business.