The consequences of poor demand planning and management failures have risen with shrinking product life cycles. As a result, companies are implementing a new level of demand management technology to boost profit margins by better accounting for supply chain variability.
According to research, 50% of businesses claim it takes more than a month to detect changes in consumer demand. In today’s fast-paced business world, this is unacceptable. Improved demand sensing and shaping procedures offer considerable opportunities for organizations to increase top-line sales, profit margins, and inventory levels.
Demand planning is the technique of precisely forecasting and ordering items to have the right number of sales at any given time. In addition to preventing out-of-stock situations, accurate demand planning can help businesses develop beyond their wildest dreams.
Demand forecasting is an essential component of a trustworthy plan. The technique of demand planning, which considers previous results, considers external and internal changes, and puts out what can be anticipated based on the parameters, is the reason it can reliably predict the future.
Demand planning relies heavily on data, the absence of which can hinder the entire planning and forecasting process. However, data is available everywhere but in an unstructured format, which, when processed properly, can help businesses with insightful decision-making and stay ahead in the competition.
Data-related challenges that hinder informed decision-making:
Data-related challenges not only hinder proper demand planning and efficient data-driven decision-making, but also impact businesses negatively. Lack of structured data prevents stakeholders from measuring sales vs. targets needed for efficient demand planning and forecasting. From partner onboarding to higher Non-productive inventory, among data-related challenges significantly impact businesses.
Let’s elucidate with a case study on one of EdgeVerve’s clients – a multi-billion-dollar consumer goods enterprise.
The client was looking to overcome the above-mentioned challenges, strengthen the supply chain and drive sales efficiencies through a Demand Sensing solution.
The client was looking for the following features:
TradeEdge’s cloud-based, low-cost, pay-as-you-go solution helped the client spread their risks, enabled a quicker go-to-market, and met business goals faster than earlier. TradeEdge Market Connect is based on an end-to-end partnership model that caters to delivering, consulting, product implementing, and managing various services for the client.
With TradeEdge Market Connect, the client has seen a 4-10% improvement in sales and has automated 90% of efforts spent on data acquisition and harmonization. Near real-time visibility into secondary sales and inventory data helped the client with better demand planning and forecasting.