Successful businesses are more often than not demand driven and plan their operations around accurately forecasting demand. However, Demand Planning is about much more than just forecasting.
Whether your industry is related to consumer goods, manufacturing, retail, services or pharmaceutical forecasting customer demand is critical. Yet while the importance of accurate demand forecasting has increased, it has also become more and more difficult to get right, due to great demand volatility and key drivers such as:
However, despite these changing conditions, many organisation's demand planning capability has failed to move with the times, often retaining a disintegrated, simplistic approach that is highly manual and lacks ownership.
Demand planning is a complex discipline which incorporates inputs from sales, marketing and operations as well as suppliers and customers. It is also more than just forecasting; rather it is an integrated set of business processes across your company and your end to end supply chain.
When done well, these elements allow organisations to become Demand Driven and in turn get better results, including holding less inventory while achieving higher service levels and realising lower supply chain costs.
GRA has extensive experience in Demand Planning. We tailor demand planning processes, systems, data and performance measures to fit every organisations industry, business requirements and capability. For example, for many industries and organisations, we advocate a bottom up statistical forecasting approach. However for others, such as the fashion and apparel industries, top down merchandise planning may be more appropriate.
We will help grow your demand planning capability by undertaking the following as appropriate to your organisation:
We will work with you to determine the best approach for your organisation in order to drive demand planning results.
Improving your demand planning capability will allow your organisation to:
Improved Demand Planning has many benefits. Typical benefits include:
GRA Senior Manager Adam Kidd talks with GRA Director Dan Knox about Supply Chain Planning Diagnostics
"GRA helped us reduce inventories and improve operating cash flow by $12 million within 12 months whilst improving stock availability in stores. All the more impressive considering we were growing rapidly, but experiencing tough retail trading conditions at the time."
– Peter Birtles, Managing Director, Super Cheap Auto Group