Demand sensing helps us identify the actual customer order trends and helps us improve the near-term forecast. Strategic actions like demand shaping for knowingly increasing or decreasing the demand for the product can be undertaken by sensing demand signals.
The bullwhip effect is a concept for explaining inventory fluctuations or inefficient asset allocation as a result of demand changes as you move further up the supply chain. As such, upstream manufacturers often experience a decrease in forecast accuracy as the buffer increases between the customer and the manufacturer.
An optimization model does the same; it calculates the decisions based on the stated preferences and constraints in the model. That can sometimes have the inadvertent effect of finding new pathways, a road less, if ever, traveled.
Naturally, supply chain optimization in supply planning can feel counterintuitive. Here’s why you should combat that feeling to create the best plan possible.
In recent webinars and presentations, I have been talking about Early Warning Systems within the context of supply chains. The news story above made me think of several examples where a supply chain would use similar concepts to develop early warning metrics.
Here's how you can use profit based product segmentation to improve the supply chain planning process.
Statistical forecasts are often used as the baseline forecast for demand planning. Due to this reason, statistical forecast accuracy is critical to improving the entire demand planning process. Use this easy step by step statistical forecast technique guide to help you get started with improving your forecasts.
Wondering how inventory is modeled in supply chain planning systems? Here's what you need to know.
How do you get the sense of what works for demand planning? Market volatilities including changes in the weather can affect any business at any given time. As such, businesses cannot rely on their history alone without considering the full picture of possible market changes. When these changes occur, businesses should be ready to adapt without causing a disruption in existing business processes. So how to do you get to the point where you get a sense of what works when it comes to demand planning?
2017 Supply chain productivity and prioritization tips for supply chain planners. Every morning, a supply chain planner must make this decision; “what should I work on today?” In a supply chain of any reasonable complexity, this question can easily be answered with the corresponding fire of the day. On any given day, a supply chain