Demand Sensing Capability
Supply chain planning and manufacturing teams need a short-term forecast view for the planning of different finishing processes. The implementation of a Demand Sensing (DS) capability generates many advantages over the demand plan already used in many companies; to cope with the demand for short-term forecasts, DS provides companies with the necessary tools to meet these challenges. Some DS advantages are:
· Increases efficiency and productivity
· Generates an intelligent daily forecast (IDF)
· It is an agile and flexible system
· Creates accurate short-term demand forecasts for finished products
· Reduces inventory levels
· Generates excellent results without any human intervention
· Achieves high level of automation of the entire process
· Safety stock can be reduced on average by 10%
· Freeing up more time for other value added tasks
· Enables improved collaboration between the supply and demand planning teams
On the other hand, the disadvantages of not implementing Demand Sensing capability:
· The need to use a large number of additional manual steps
· The need for manual data entry, overwriting weekly forecasts
· The significant amount of time consumed as demand planner reviews orders and adjusts forecasts
· Extra pressure and work on supply chain planners
· Competition between demand and supply planning teams, causing conflicting planning drivers
Putting Demand Sensing capability allows Supply Chain planning teams to effectively generate and maintain forecasts by reconciling multiple daily demand forecasts, orders and longer-term plans.
Is your business sensing demand, are you shaping that demand and your response to it?
Dave Food
M? - 07775861863