How can you adjust your demand supply plan for E-Commerce in a changing market?

1 Analyze your data

The first step to adjust your demand supply plan is to analyze your data and identify the trends, patterns, and fluctuations in your sales, inventory, and customer behavior. You can use various tools and methods to collect, organize, and visualize your data, such as spreadsheets, dashboards, or analytics software. You should also segment your data by product, category, channel, season, location, and other relevant factors. By analyzing your data, you can gain insights into your current and future demand, your inventory levels and turnover, and your customer preferences and satisfaction.

2 Forecast your demand

The next step is to forecast your demand based on your data analysis and other external factors that may influence your sales, such as market conditions, competitors, promotions, events, or holidays. You can use different techniques to forecast your demand, such as historical analysis, statistical models, machine learning, or expert judgment. You should also consider different scenarios and uncertainties that may affect your demand, such as changes in customer behavior, preferences, or needs, or disruptions in your supply chain or delivery. By forecasting your demand, you can plan ahead and prepare for different situations and outcomes.

3 Align your supply

The third step is to align your supply with your demand forecast and ensure that you have enough inventory to fulfill your orders and satisfy your customers. You can use various strategies to align your supply, such as replenishing your stock based on reorder points, safety stock, or lead times, sourcing your products from multiple suppliers or locations, or outsourcing or dropshipping your products from third parties. You should also monitor and control your inventory levels and costs, and avoid overstocking or understocking your products. By aligning your supply, you can optimize your inventory management and reduce your risks and expenses.

4 Communicate with your stakeholders

The fourth step is to communicate with your stakeholders and share your demand supply plan and forecast with them. Your stakeholders may include your suppliers, distributors, logistics partners, marketing team, sales team, customer service team, or management team. You should communicate with them clearly and regularly, and update them on any changes or issues in your demand supply plan. You should also collaborate with them and seek their feedback and input on your plan and forecast. By communicating with your stakeholders, you can improve your coordination and cooperation and enhance your performance and efficiency.

5 Review and revise your plan

The final step is to review and revise your plan based on your actual results and feedback. You should measure and evaluate your demand supply plan and forecast against your key performance indicators (KPIs), such as sales volume, inventory turnover, fill rate, service level, or customer satisfaction. You should also identify and analyze any gaps, errors, or deviations in your plan and forecast, and determine the causes and effects of them. You should then make any necessary adjustments or improvements to your plan and forecast, and implement them in your next cycle. By reviewing and revising your plan, you can learn from your experience and enhance your accuracy and reliability.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?