Developing a Demand and Supply Planning Framework for a Leading Manufacturer of Wireless Medical Devices
Engagement Overview: The client wanted to accurately forecast the market demand for their medical devices across various developing economies. To assess the demand, the medical devices manufacturer approached Quantzig to devise a demand and supply forecasting framework by leveraging supply chain analytics. They also wanted to accurately forecast demand and adjust inventory to avoid demand-supply […]READ MORE >>
The client wanted to accurately forecast the market demand for their medical devices across various developing economies. To assess the demand, the medical devices manufacturer approached Quantzig to devise a demand and supply forecasting framework by leveraging supply chain analytics. They also wanted to accurately forecast demand and adjust inventory to avoid demand-supply shortages.
A detailed quantitative analysis of market opportunities was carried out to estimate volumes, revenue, and market shares for specific market segments. The framework enabled the client to integrate demand and supply planning as a core strategy in their current supply chain management system. Following this, the medical devices manufacturer redesigned their system to leverage and include demand management strategies, such as demand sensing, supply planning, demand forecasting, and advanced supply chain analytics based methodologies.
About the Client:
A multinational company specializing in the manufacturing of wireless medical devices. The client is a leading player in the healthcare industry with several well-established subsidiaries operating in over 40 developed economies.
The wireless medical devices manufacturer was facing difficulties in accurately forecasting inventory and production needs.
How did Quantzig Help the Client:
- Step 1: Developed a demand and supply planning framework using a two-step approach
Our supply chain analytics experts followed a structured approach to develop a precise demand and supply planning framework.
- Step 2: Created an agile supply chain
Overcoming the rigidity caused by an inflexible supply chain and regulatory requirements, which required the incorporation of significant changes in all planning, execution, and consumer-facing processes across the supply chain.
- Step 3: Enhanced demand forecasting methods
The demand forecasting methods had to be refined as accurate forecasting has a significant impact on stability, inventory, and service levels. Better supply planning also requires a combination of measures – including changes to the organizational structure, statistics, and the use of advanced supply chain analytics in demand forecasting.
Benefits of the Engagement:
Our supply chain analytics solution helped the wireless medical devices manufacturer to gain detailed insights on demand swings in the healthcare industry. It also enabled them to avoid out-of sock scenarios by improving inventory levels and ensuring in-stock availability throughout the year. Better assortment and allocation of stocks across all channels assisted in inventory optimization by reducing stock wastage.
Supply chain analytics offers greater visibility of supply chain processes by establishing a cohesive relationship between all tiers of the supply chain. A holistic supply chain analytics approach can help account for changes in process design, organizational operations, and data governance to address market trends including specialization, globalization, and regional demands.
Why incorporate demand and supply planning as a part of supply chain analytics?
To deal with the shortcomings of traditional supply chain management systems, companies are now recognizing the need to incorporate demand and supply planning to help predict future demand patterns and respond in an agile manner to changing customer needs. Moreover, this becomes a necessity as there is an increasing need to sense market demand and quickly translate the requirements into supply chain responses.
Want to learn more about our supply chain analytics solution?
A framework that coordinates demand and supply planning strategies implies a radical takeoff from conventional supply chain models. It expects organizations to upgrade their frameworks to incorporate demand administration procedures – detecting channel demand, improvements to effectively shape requests, and applying advanced supply chain analytics to drive shrewd reactions.
Finding and adding the right demand and supply planning tool is the next big step for your collaborative business strategy. Moreover, demand and supply planning is an approach, which not only reinforces the bond between various segments of the supply network but also between the supply chain and the end-users.