Demand Forecasting, Sales Planning, Big Data Analytics & IBP
Developing a process and system to do event modeling for promotional programs is the holy grail that will spark of the interest of the Sales groups in fully integrating with the S&OP process. In summary, Sales Planning functions are critical for better Sales Management as well as for an effective S&OP process.
How do we prepare for Black Swan events?
Black Swan events are those highly unpredictable events that occur out of nowhere and cause a systemic shock to the process and the way we do things. They may perennially alter the way we conduct our business.
Bullwhip effect is a phenomenon of demand being overestimated or underestimated as it passes through various stages of supply chain resulting in exaggerated supply fluctuations. The increased variability in demand … Read More
This article summarizes the difference between Demand Planning and Demand Management. We raise the question on the role of Demand Planners in Demand Sensing, Demand Shaping and Demand Management.
Start with the forecast first and make plans and contingencies for the extent of the error. Improve on the forecast by quizzing, dialoguing, negotiating and working with the ROC. This should be well emphasized in the basics of supply chain management.
Join hands together to move the ROC to make a better demand plan!
The simplest approach to model promotions is through interventions. This is also called event modeling in the literature. We collect a list of events and classify into types of events … Read More
