The importance of demand planning isn’t lost on businesses. With demand planning you’re able to improve product forecast accuracy, increase supply chain scheduling, optimize your labor management, and it also anticipates cash flow with financial planning. But, what are other key benefits of demand planning?
The two key benefits are:
1. Exception management
When demand planning there’s usually a margin of error, which is what you use to figure out forecast accuracy. It gives you a clear indication of what to expect down the line. It also creates the ability to define an exception management process. This process is part of a data quality cycle, which focuses on identifying and handling cases that are outside the norm for your business. Exception management happens at the end of the data quality cycle and creates a mechanism for your enterprise to deal with large scale disruptions. It also moves your business away from a reactive state to a proactive one as real-time visibility across the supply chain can be driven by exception.
Another benefit of demand planning is the ability to segment your data into smaller sections to help measure your performance and improve service. You can perform Demand segmentation analysis on company segments, products or locations. It gives you the ability to perform quality assurance and improve the overall standards in your business.
You can greatly enhance Supply chain management when you implement a demand planning solution. It takes the risk out of daily operating decisions, saves money, improves business output, and also create the ability to overcome disruptions.
Want to know more about Demand Planning? Check out our other resources: