Saturday, 15 June 2019

The Upside Of Customer Demand Planning

By Angela Moore


When it comes to forecasting the interest in soon to be released products, there are several aspects. In one case, customer demand planning or CPD enables sales and marketing teams to develop forecasts based on planning as related to revenue, inventory, production and service processes.

CDP is also an integral and important aspect of the marketing process when it comes to managing different value chains. For, the first step in the process is to forecast the demand for a product. After which, it can be easier for managers to plan the deployment of resources based on such data.

While most planning systems use a top down approach when it comes to marketing and product release, CDP uses a bottom up approach. In most cases, there are only a few risks related to the number of planners required and those related to the number of products to be released.

For companies which prefer to use software to accomplish this type of planning, there are a number of companies now releasing different versions. In most cases, companies will find it best to review different packages to find the one which will work best with the specific product to be released. In addition, there are also market to consumer systems which cut out the need for middle men which can often save the company and distributor a great deal of money.

Challenges and complexities have been a problem for years with regards to planning and forecasting delivery models. However, those related to manufacturers and distributors are vastly different than those related to demand management formats. For example, demographics often play a major role with regards to areas of the world which may show interest in a product.

This type of system is aimed more at matching customer logic and includes advanced practices in technology, transportation optimization, sourcing, channel management, pricing optimization, demand creation inventory and customer experience. For, unless a company can plan the results in all such areas, it can often be difficult to know whether or not a product has the potential to be successful on the open market.

Like in other areas of business, new technologies are assisting in forecast and predictive analytics in this area. For, this type of planning is changing the way different companies perform and operate before becoming competitive in the industry. In addition, with the evolution of these solutions, companies are now discovering new methods for cutting cost and increasing efficiency.

One reason CPD can often assist companies is that productivity on any level is never an accident. To be successful, a company needs to forecast and plan ahead to assure that the inventory released to the public will meet the demand. As such, by planning ahead, some companies are now finding more success where many had failed in the past.




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