Topics In Demand
Notification
New

No notification found.

Demand Planning Software – Supply Chain Management Lessons
Demand Planning Software – Supply Chain Management Lessons

July 5, 2023

77

0

Supply chains worldwide were recently put under the most crucial stress test during the pandemic. Business leaders and decision-makers reacted by mobilizing responses, building resilience, and concentrating on core values simultaneously. Now that almost three years have passed, it's time to recollect what we have learned and how to apply these lessons to fuel growth in the future supply chain. 

Demand planning in supply chains is all about providing an accurate forecast of future demand to meet customer expectations as closely as possible. Underestimating forecast comes at the apparent cost of decreased sales revenue and missed sales opportunities, but overestimating can be just as expensive because excessive inventory takes up space and cash. 

According to a survey, the businesses well equipped to respond to the major market shifts fuelled by the pandemic had sound relationships with their vendors, suppliers, and tools such as demand planning software to provide complete visibility into their more comprehensive supply chain networks. Those lacking both capacities for accurate projections and supply chain visibility were left scrambling to implement systems that should have been there a long time ago. 

To make sure that your business is set to face the next disruption, whether it's a natural calamity, labour-related crisis, or constantly shifting customer expectations, you need to connect your organizations with demand planning tools with these following tips: 

  1. Visibility is Critical in More Ways Than We Think 

It is almost impossible for business leaders to evaluate issues if they do not have access to end-to-end visibility of every nod in their supply chain. In supply chain, we always talk about exploring our "what if" scenarios, but what if you have access to vast data and don’t know how to plan your future forecasting and inventory planning? The pandemic showed us we cannot always plan ahead for unexpected future events. Still, with efficient demand planning software, we can utilize our own data to be more prepared for the constantly changing future. 

When we plan for tomorrow, prompt actions can be taken to avoid situations like overstocking or understocking. For instance, conventional planning methods suggest that no action needs to be taken. Still, AI in demand forecasting may indicate that orders are likely to increase, and countermeasures are required. 

  1. Make Changes Before You Have to 

If the COVID-19 pandemic has taught us anything, major discrepancies in the supply chain require a proportionally rapid and innovative response. The businesses that fail to cope with the paradigm shift and do not respond promptly will suffer from the constantly evolving market. The leading way to set yourself up for future disruptions is to connect your business with intelligent demand forecasting software to improve efficiency and supply chain resilience. If you think your existing systems are adequate enough to deal with future disruptions, think again! 

One of the best possible opportunities for change is doing it while you are on the move. Many businesses change their production line or operation locations to another place just to give it a fresh approach. And many organizations have witnessed that each time they made these changes on the move, they did experience some increase in productivity. 

  1. Use the Upgraded Tools and Technologies  

If you are still dependent on traditional processes and tools for your forecasting demand, you are missing out on some sizable improvements. These days manufacturers are under constant pressure to decrease costs, enhance supply chain efficiency, and improve revenue margins. With the inefficiency of clear visibility into their supply chain due to manual operational approaches and poor demand planning tools, they lack the much-needed deep, actionable insights. This keeps them from developing synchronized, efficient, and responsive supply chain strategies to achieve the desired operational excellence. 

What’s the solution to this problem? An agile demand planning tool that uses demand-driven analysis and real-time inventory movements to predict demand and offer a comprehensive view of each component of your supply chain more rapidly. AI in demand forecasting effectively serves as a linchpin of these tools because the technology can improve accuracy while delivering efficiency to scale that no human can match. With the help of forecasting demand tools, you can double up productivity, output, and quality while reducing costs, disruptions, and delays. Incorporating demand forecasting software can take improvements even further and enhance your decision-making capabilities. 

 


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


images
Karishma Shikalgar
Marketing Manager

Avercast LLC is an industry-leading supply chain management company that integrates 250+ advanced forecasting algorithms.

© Copyright nasscom. All Rights Reserved.