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Last Updated on April 11, 2022 by Work In My Pajamas
Demand planning is a vital process utilized by companies to prepare for consumer demand. It is a way to forecast how much inventory they need at a given point, take the steps necessary to have that inventory on hand, and prevent unused inventory from taking up valuable storage space. This all helps keep customers satisfied and improve profits.
As important as this process is, many companies that utilize it make a fundamental error. They keep the various aspects of demand planning compartmentalized or siloed in different areas. However, in order for demand planning to be completed and used efficiently, all aspects must be included in the planning process. This is difficult, though, when it’s not put together in an organized fashion.
Imagine, for instance, that you have one person from your team collect and compile historical data, one collect seasonal trends, and another study current consumer trends. They store this data separately, handing it over during specified time periods.
That might not be such an issue if your plan is perfect, you have all of the resources you could ever need, and your demand never changes, but that is never the case. By only sharing data at specified times, you and the rest of the team do not have the necessary information to adapt the plan or ensure the resources are available as needed.
A better plan is to keep all aspects of demand planning in one centralized location, such as software designed specifically for this task. Implementing this software can provide the following benefits and more.
Improved Organization
Efficiency requires organized processes, something that compartmentalizing information can prevent. Providing one centralized place for all relevant data to be stored makes sharing and inputting data easier. It also makes it much simpler for those in charge to utilize the data to make important decisions more quickly.
Increased Automation
Demand planning software helps to automate many tasks. These include calculations, extracting key insights, organizing historical data into usable information, and more. This is incredibly helpful because even companies who gather all the relevant data don’t always know how to convert it into actionable information. With the best demand planning software, tasks like these are taken care of.
Automating these tasks allows your team to spend more time making key decisions and implementing the necessary steps to meet demand. It also reduces the likelihood of errors, making your process even more successful.
Constant Monitoring of Progress
A company’s demand can change constantly or very little. In either case, though, it’s essential that companies be able to make any adaptations necessary to meet those changes.
By implementing demand planning software, this can be much easier to do. Key members of the team can monitor the data regularly to ensure everything is flowing as it should. If there are any potential issues, those members can see these issues ahead of time and act more swiftly to address them.
Demand planning plays an integral part in business success and customer satisfaction. And having the right software to support your planning is one of the best moves you can make to ensure it all happens as smoothly as possible.
