It’s estimated that up to 79 percent of all companies with high-performance supply chain processes saw above-average revenue growth. What you may not realize is that the performance of your supply chain may mean the difference between your success or failure.
One of the main factors in a high-performing process is whether you analyze and plan for the future needs of your business. One of the most common methods used to do this is demand planning. The importance of this is clear – businesses using big data analytics in their demand planning saw an improvement of 425 percent in the order-to-cycle delivery times.
Some of the biggest benefits offered by implementing demand planning in your processes can be found here.
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Improve the Accuracy of Product Forecasts
Proper demand planning can help your supply chain managers by helping to forecast overall product production and the expected revenue for the company. For example, if your company has been forecasting too many products consistently for a certain monthly promotion, demand planning provides two things. It offers a framework to investigate the prior forecasts and to identify why predictions were made and it offers a methodical approach to adjust your forecasts based on real company data.
Increase Scheduling for the Supply Chain
When you are able to predict and analyze when your sales are most likely to happen, you can better plan your production, warehouse needs, and your shipping schedules. If mandatory maintenance shutdowns or a website reboot is needed, you can avoid doing these when you are most likely to receive large numbers of orders.
Also, during the times of the year when you have increased demand, you can work with your team members and suppliers to make sure that your stock levels stay high. If there will be fulfillment delays, you can reach out to your customers to let them know of these issues, so they are well-prepared, rather than taken by surprise.
As you can see from the information here, demand planning offers an array of benefits that will help your business run more efficiently and is going to provide a higher level of productivity in every arm of your process. Be sure to implement this process to ensure that you get the best results from your supply chain and that you can mitigate potential issues that may pop up along the way. This is going to save you time and money while boosting your bottom line.