<img alt="" src="https://secure.wine9bond.com/223452.png" style="display:none;">

Starting Demand Sensing

Supply chain planning and manufacturing teams need a short-term forecast for the demand of different...

Read More
Posted by Dave Food on Jun 12, 2017 6:00:00 AM
Dave Food

Supply chain planning and manufacturing teams need a short-term forecast for the demand of different finishing processes. The implementation of a Demand Sensing (DS) system generates many advantages over the once already used in many companies; in order to cope with the demand for short-term forecasts, DS provides companies with the necessary tools to meet difficulties. 

 

Is your supply chain responding the nuance of Demand signals?

 Some DS advantages are:

·        Increases efficiency and productivity.

·        Generates an intelligent daily forecasting (IDF).

·        It is an agile and flexible system.

·        Creates accurate short-term demand forecasts for finished products.

·        Reduced inventory levels.

·        The need of external IT consultants is significantly reduced.

·        Generates excellent results without any human intervention.

·        Achieves a high level of automation of the entire process.

·        Costs of IT projects are reduced.

·        Safety stock can be reduced on average by 10%.

·        Freeing up more time for value-added tasks.

·        Collaboration between the supply and demand planning team is fostered.

·        Two teams working much more closely together and pursuing the same goals.

In the other hand, we have the disadvantages of not implementing the use of Demand Sensing:

·        The use of a large number of manual steps.

·        The need of someone to enter the data, overwrite and work with it.

·        No time to overwrite forecast results because of the lots of demands planners have to attend.

·        The long time it takes for demand planner reviewing orders and adjusting forecasts.

·        The planner would disrupt not only his own processes but also several technical processes.

·        Extra pressure and work on supply chain planners.

·        Competition between demand and supply planning teams, causing extra work checking each other.

Instead of starting projects within each category, IT division could build a global model for all categories in specific regions, in such a way that Demanding Sensing is able to build interfaces much more efficiently. A new and more sophisticated solution is the use of Multi-Enterprise Demand Sensing /MDS), a software that allows to effectively generate forecasts by reconciling multiple daily demand forecasts.

Demand Sensing is aiming at a level of process automation involving a minimum of human interaction. At the same time, DS is looking at a further integration of customers and sales divisions, enabling companies to create end-to-end planning.  

How responsive is your Supply Chain - How demand sensitive is your signal?

Dave Food

Prophetic Technology

Post Your Comments Here