Demand Planning critical for Intelligent Supply Chain
Demand planning is critical for intelligent supply chain so that customers can get what they need, when they need by delivering on delivery promise for business continuity. Then only supply chain management can create difference between unhappy customer and delighted which is also required for overall profitability. There are different methods for demand estimation depending on number of products, their variants, nature of customers and so on.
Modern Demand Planning Techniques
KamatSoft eValueMax v10.1 use modern demand planning tools to estimate demand including one with the seasonal availability. There is also provision for best fit models using Artificial intelligence. But there are limitation to all these techniques and therefore many times collaborative forecast is best.
Collaborative forecast involves capturing forecast from marketing persons at customer and product level. Marketing persons are given pending order position for their customers due for dispatch in forecasting period along with previous purchase for every product purchased by customer in specified period. This forecast is then normated by business heads and used for supply chain planning. Many times forecast can be directly collected by customers. However forecast given by customers need not be superior than forecast generated after talking to them.
Demand planning also have capability of monitoring real time performance against the forecast. This may result into generation of new forecast based on the orders procured during the month which could be used. Actual performance can also be compared against forecast generated by different methods to know forecast accuracy.
Available to Promise
Demand planner also provides capability of committing delivery dates to the customer without having to refer to production team. Available to promise is more relevant in products which are produced for inventory. The system considers available stock of those goods,
Capable to Promise
Demand planner also provides capability of committing delivery dates for products produced against orders. For existing orders it look at production schedule to know when it is planned. For new orders and promising date it runs basic schedule for promising delivery date.