Demand Management Best Practices: Process, Principles, and by Colleen Crum PDF

By Colleen Crum

ISBN-10: 1932159010

ISBN-13: 9781932159011

This complete publication offers top perform suggestions that may enhance total enterprise functionality for provide chain companions and all capabilities inside an organization impacted by means of the call for administration procedure. It offers views on real looking expectancies from a requirement plan and the way judgements on balancing offer and insist are so much successfully made.

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Extra resources for Demand Management Best Practices: Process, Principles, and Collaboration (Integrated Business Management Series) (J. Ross Publishing Integrated Business Management Series)

Example text

The business plan, like the demand plan, is a model; it is not a perfect prediction of a company’s financial performance. Senior executives should be managing to meet the objectives of the business plan. When there is a gap between the demand plan and business plan, as in the example above, it should trigger action to narrow the gap. The demand consensus review is an excellent forum for reviewing the actions planned to narrow the gap between the demand plan and the business plan objective. This is also the proper forum for determining when the expected results from these activities should be reflected in the demand plan.

The sales and operations planning process would ensure that the demand and supply plans were synchronized each month and that inventory, lead time, and pricing tactics were to the company’s best advantage. Figure 4 shows the company’s improvement in forecast accuracy for three product lines over a 12-month period. 5 percent, or $800,000, reduction in finished goods inventory in the first year. 8 million Reduced raw material inventory by $600,000 Reduced obsolete inventory by $400,000 Without a doubt, improved forecast accuracy drives inventory reduction and increased inventory turns.

These communications enable salespeople to know what they are expected to sell and what will be available to sell. The effectiveness of communications frequently means the difference between a mediocre and an excellent demand management process. Communications is the linchpin of the demand management process and is covered in detail in Chapter 5. Figure 7 depicts a best practice demand planning process. As you can see, the demand plan is based on multiple inputs — from the sales, marketing, brand, and product management organizations as well as statistical analysis.

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Demand Management Best Practices: Process, Principles, and Collaboration (Integrated Business Management Series) (J. Ross Publishing Integrated Business Management Series) by Colleen Crum


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