Leveraging Demand and Supply Planning to Strike the Right Balance Between Customer Forecast and Inventory Supply: A Case Study on the Telecommunication Industry

Nov 14, 2018

Telecommunication Industry Overview

The telecommunication industry has witnessed rapid changes over the last few years. Advancements in technology have completely altered the market landscape for the telecommunication industry. The advent of 4G, smartphones, and diverse mobile applications has transformed the way people consume telecom services. However, such disruptive innovations are posing challenges for telcos as they are looking for means to stabilize their revenue streams.

Some of the factors affecting demand and supply planning in the telecommunication industry include:

  • Higher levels of connectivity: Today, with the relentless growth in technology, IoT is slowly paving its way into the telecommunications network space. This places a lot of pressure on the network providers to streamline their technical capabilities to meet the growing demand.
  • Competition from other OTT services: It is estimated that approximately 2.5 billion people worldwide rely on messaging apps as compared to the conventional text services offered by the telcos. This recent increase in the number of OTT service providers is compelling telecommunication network providers to focus on innovations to scale their service offerings.

Why incorporate demand and supply planning?

QZ Banner SquareTo deal with the shortcomings of traditional supply chain management systems and several other factors affecting demand and supply planning, organizations are now realizing the need to improve demand and quantity planning to help predict future demand patterns and respond in an agile manner to varying customer needs. Moreover, this becomes a necessity as there is a growing need to sense market demand and translate the requirements into supply chain responses.

Factors Affecting Demand and Supply Planning

Several factors affect a company’s ability to service its consumers and optimize the supply chain. Some of the factors affecting demand and supply planning include:

  • Changes in prices
  • Costs of supply chain management
  • Interest rate and investment climate
  • Government policy
  • Laws and regulations
  • Population growth

To cope with the factors affecting demand and supply planning, businesses must employ effective demand and supply planning strategies.

Interested to know more about the factors affecting demand and supply planning in the telecommunication industry? Continue reading or request a FREE proposal.

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