Why Better Demand Planning Isn't the Answer

If you can't predict it, respond to it



Alerting

  • A must-have capability is accurate and timely demand sensing to quickly understand demand shifts.
  • Exception-based alerts to projected misalignments in demand and supply (e.g., forecast change beyond tolerance, late demand impacting quarter-end, supply disruptions, late customer orders, etc.) can enable demand managers and order fulfillment staff to quickly realign supply and/or engage manufacturing operations as needed.

Collaboration

  • Resolution of an issue requires multiple people to collaborate in order to reach a consensus decision.
  • Only human judgment applied through collaboration and supported by hard facts can allow teams to evaluate several innovative ways of resolving the issues at hand and reach a viable solution that best serves the interests of the company, customers and other stakeholders in the supply chain.

Evaluation and Resolution
  • While it is important that all stakeholders can collaborate and evaluate alternative ways of resolving a supply chain issue, equally important is that they do this is in a manner that is consistent with both financial and operational corporate objectives. This requires an ability to evaluate the impact of all decisions (prior to execution) against the achievement of defined performance targets.
  • Therefore, there is a need for decision support that drives profitable responses through shaping demand and allocating finished goods supply as appropriate.

Who Does This Apply To?





Think Broader than Demand Management





The Bottom Line







About the Author Trevor Miles Kinaxis www.21stcenturysupplychain.com


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