There are many ways demand planning software can improve your company. This article will cover 5 of the main areas that you are sure to see added benefit with the implementation of demand planning software.
Demand
planning software uses forecasts to make plans to productively meet the upcoming
demand of your consumers.
There is
a plethora of data used to create your forecasts. Previous sales records,
consumer profiles, historical patterns, seasonal trends, and current market
conditions are some examples of the type of data used in demand forecasting.
This software produces predictions of what your demand is going to look like in
the coming weeks, months, and even years.
Now that
you have reliable forecasts, the planning can begin. Essentially, you’re given
the ability to see the future, and with that comes many additional benefits. Supply
chain demand planning software helps you make plans for ordering, distribution,
warehouse operations, employment, marketing efforts, and more. Improving in
these areas strengthens your company greatly.
Ordering
When you
know the amount of demand you’re going to be faced with, you can prepare to
meet it head on. You can make sure to have the right amount of product in
stock, so you don’t have to deal with overstock or stock out situations.
Distribution
Demand
planning software tells you what the demand is going to be in different locations.
This allows you to keep product in stock where people are going to want it.
For
example, have you ever been to gas station in the middle of nowhere, and
somehow, they still have the drinks and snacks you were hoping to find? Demand
planning software allows you to make sure items are in stock, in the right
location, and at the right time.
Warehouse
Operations
There
are many moving parts in any warehouse. Inventory inaccuracy results in a
negative ripple effect throughout your warehouse. As demand is accurately
forecast and your inventory levels become more and more dependable, positive
changes begin taking place in your warehouse.
Stocking
becomes much less of a hassle as turnover rates improve. There won’t be large
quantities of extra product that need to find space while the new product comes
in as well. Also, complications due to inadequate inventory vanish. Order
fulfillment will be timely and accurate, and this will in turn improve your
customer relations as well.
Employment
Have you
seen signs looking for “holiday help” or something of that sort? Big box
stores, like Walmart, know they’re going to see a huge spike in demand around
the holidays. Every year, these stores hire seasonal help to make sure they can
provide for their customers.
Demand
planning allows business to employ the amount of labor they need to operate
effectively. No one wants to pay workers that aren’t needed, but also no one
wants to be stuck with an insufficient number of workers. Demand planning
software helps you know how much labor you need.
Marketing
Efforts
When
you’re aware of what and when products and services are going to be in demand,
your marketing team has a reliable basis to go off. You can promote the
products people want and ensure you make the forecast sales.
The best
demand planning software will help your company in countless ways. If you want
to see and plan for future demand, then you need to get your hands on some
demand planning software.