The purpose of demand sensing is to allow your business to cope with change, remain competitive, and consistently provide top customer service. Intelligent demand forecasting expertly balances capacity with supply and demand and generates accurate forecasts in an instant. The Concurrent Planner uses real-time demand signals to create daily forecasts reflecting current market realities instead of relying solely on historical sales which are often disconnected from present conditions.
Demand gets distorted in much the same way as messages in “Chinese whispers”: as information is passed on from one person to the next or from one organization to the other, information is summarized, changed, and sometimes hardly recognizable compared to its original source.
In the supply chain, especially for order fulfillment, forecast accuracy is important when forecasting demand per item and customer for specific months or calendar weeks. For this level of planning, the accuracy of the forecast for most companies drops to 50%, where it has been stuck for decades. Traditional forecasting systems and processes have reached their limits. Unexpected demand increases and decreases in demand cause shifts in the production schedules, which lead to overstocking of some items and too little of others; this in turn leads to lower capital returns, diminishing margins and declining service levels.
Demand Sensing in the Supply Chain
A company’s supply chain can make or break the business. Intelligent demand sensing gives powerful support for better product availability and to protect against lost sales for products in high demand. It also helps to invest less cash in warehouses to protect against uncertainty reducing the working capital requirements to operate the business.
Increase in Operating Margin
On time delivery
Concurrent Planner Solution
The Concurrent Planner increases product availability, minimizes inventory, and improves on time delivery. It is a lightweight, yet comprehensive solution connected to the company’s information systems. The Concurrent Planner provides users a modern web-based solution.
The Concurrent Planner maintains consistency between sales plan and production plan at all time and plans production in real-time – even for the whole business year – taking into account the various constraints concurrently.
Reliable order promising
A key moment of truth in business is when a customer places the order and a fulfillment promise is made. Can you fill the order when the customer wants to take delivery and, if not, when can you? If planning inadequacies cause supply shortages or if customer commitments are given based on incomplete or misleading information, the order will most likely not be filled satisfactorily. For this reason, order promising is the linchpin of demand management, in which companies aim to match supply and demand over time both during and in between planning cycles.
The Concurrent Planner determines reliably and in real time the availability of achievable delivery dates. Your sales and order processing department can give your customers reliable delivery dates. The Concurrent Planner helps you to meet the most demanding customer expectations by promising a delivery to the customer only when it’s possible, taking into account any limitations such as inventory, production capacity, and purchasing deadlines from suppliers. Capacity and inventory are used to their fullest extent so that orders can be produced and delivered only when needed by customers.
The Concurrent Planner aligns a company’s tactical supply and demand plans, for example, with customer segmentation strategies, policies, and priorities. The software promises or reserves products based on your strategic priorities, whether that means prioritizing specific customers, distribution channels, or geographic regions. In this way, the warehouse is optimally planned and provisioned based on daily demand changes, thereby reducing the overall inventory required to meet customer demand.
Dynamic demand forecasting
Demand Forecasting helps companies make decisions based on the events of minutes, hours, or days ago, not just the events of recent months or years. Dynamic demand forecasting overcomes latency issues associated with traditional time series forecasting methods, which – assuming regular customer purchases – are expected to repeat over a long period of time.
Do not let business be disturbed by fluctuations in your supply chain or demand forecasting errors. The Concurrent Planner closes the gap between your plan and the reality in your supply chain. Changes and patterns in downstream activities are automatically detected, for example, by analyzing sales orders, EDI transactions, and production orders so that you can continue to reach the service levels you want – given the fluctuations in demand.
Concurrent Planner creates a dynamic, optimized demand forecast combined with robust inventory and purchasing optimization to reduce inventory and working capital. The inclusion of detailed short-term demand signals and the interplay with the demand forecast reduces forecasting errors and optimizes stock levels. The result: improved service levels and warehouse efficiency, even for periodically requested items. Not only do you get a more accurate demand forecast, but you get a plan for better business results.
Closing performance gaps
Salespeople need a better overview, such as open orders, delivery status, and customer marketing programs and promotions to better sell their products. It is important to always be informed when the information changes. Using Concurrent Planner’s real-time analytics, salespeople can find out where forecasts differ from actual customer needs. In many companies, salespeople need to contact other people in different roles in their company to get an often incomplete picture of their customers.
Concurrent Planner provides salespeople with a complete and up-to-date view of information about their customers so they can sell better and create more accurate forecasts. With Concurrent Planner, employees can view information with the right level of detail – by item, customer, region, and more – by simply drilling down in the Concurrent Planner. Customizable dashboards provide the information to make quick decisions, show sales forecasts as needed, and provide order information in the appropriate formats required for forecasting and demand management.
The Concurrent Planner also notifies the responsible sales representative and planners with alerts and related actions when new information becomes available so that the employee can work through these alerts, make appropriate adjustments to the forecasts, and, most importantly, promote sales with customers.