4 Areas Sure to Improve with Demand Planning

 What is demand planning?

Demand planning is the process of predicting what future consumer demand will be, and then planning how to effectively meet that demand. Businesses benefit from demand planning in multiple areas. Procurement, inventory accuracy, warehouse operations, employment requirements, delivery, customer satisfaction, and more can all be improved with effective demand planning tools.

With the current stream of constant supply chain interruptions along with the holidays quickly approaching, Amazon has been making every effort to ensure satisfied customers. There is evidence of supply chain complications all around. It’s becoming increasingly more difficult to adequately restock shelves, ports are backed up, products remain in shipping containers waiting to be unloaded, there’s a shortage of delivery drivers, and this is just the tip of the iceberg.

The current supply chain conditions are no secret, and businesses are frantically trying to adapt to still have whatever amount of success they can. In this time of confusion, one thing we can be sure of is that the holidays are quickly approaching.

 

What is Amazon doing?

It’s been predicted that it’s going to be a challenge for consumers to get popular items in time for Christmas. With effective demand planning and forecasting, Amazon has been able to put some productive and helpful practices in place. They’ve really been trying to beef up their operations. Amazon has done this by expanding in multiple areas including aircrafts, ships, buildings, delivery, and more. Doing this has caused them to need more employees. As you know, there’s an unending list of factors that affect supply chain. With effective demand planning software, Amazon is able to do all they can to prepare for upcoming demand.

 

Amazon has 800 delivery stations, 260,000 flex drivers (drivers who use their own vehicles), 150,000 seasonal workers, over 50,000 trailers, and they will soon have 85 aircrafts. They have been taking action to ensure they have reliable relationships with ocean freight carriers. Amazon currently offers faster than same-day delivery in 15 metropolitan areas. They have strong relationships with their network to enable flexibility and ensure operational fulfillment. Amazon is able to make these productive preparations due to supply chain demand planning.

 

How Can it Help You?

Here are some brief explanations of how demand planning tools are sure to improve your company’s operations.

Procurement – demand planning software gives you insight into what your consumers are going to want. This allows you to manufacture and order the correct amounts of the different products you sell.

Inventory – if you use demand planning tools effectively, you’ll only have the inventory that you need. You won’t have to store an abundance of overstocked products, which will greatly improve the functionality of your warehouse. Additionally, you won’t experience stockout situations, which will lessen the chaos of order fulfilment that occurs in most warehouses.

Finances – as explained above, inventory accuracy leads to less overstock and stockout situations. Excess products cost you, as do lost sales due to inventory shortages. So many areas of your business can improve with demand planning and forecasting, and these improvements will save you money and increase your revenue.

Marketing – with the insight of what products are going to be in demand, your marketing department is given a clear path of what direction to take advertisements and promotions. Not only can you promote products you know are going to be popular, but forecasts allow you to productively strategize your marketing campaigns.

These are just a few areas that can be benefited if you use demand planning solutions. Your company will be strengthened and grow in many additional areas as well.

If you want to successfully meet consumer demand this holiday season, or at any time really, it’s necessary for you to find the best demand planning software for your company. There are multiple options available, but you should find the software that’s the best fit for the specific needs of your business.