Tag: demand forecasting models

customer insights and analytics

How Demand Forecasting Helps Businesses Adapt to Capricious Customers

In today’s complex business world, high-performing, resilient supply chains are crucial for success. However, businesses from various sectors face unique challenges that curtail their ability to meet the dynamic market needs and customer service expectations despite having a robust demand forecasting process in place. Reasons for inabilities can be traced down to an under-performing supply chain that lacks a basic scalable demand forecasting infrastructure. Moreover, such inefficiencies can also lead to shortfalls in forecasting accuracy, supply and demand planning, and production overhauls.

What is demand forecasting and why is it important?

Demand forecasting is a systematic method that involves predicting the demand for specific categories of products and services under a set of irrepressible, competitive forces. It helps businesses to gauge the popularity of products over a fixed period based on market and customer needs. Insights such as these enable businesses to ensure they maintain the right stock-levels required to fulfill consumer needs.

Demand forecasting plays a key role in business decision making across industries, such as planning the production, inventory optimization, purchasing raw materials, managing funds, and product pricing. Here are a few reasons why its important from a business perspective:

  • Helps improve customer satisfaction
  • Reduces inventory stock-outs
  • Lowers safety stock requirements

We offer a unique combination of supply chain planning and forecasting solutions to help our clients accelerate growth and improve productivity. Request a FREE proposal for personalized insights.

Adopting an analytics-based systematic approach to supply chain planning can help businesses boost supply chain performance, resulting in several other benefits. From reducing inventory costs to improving customer satisfaction rates, demand forecasting turns out to be an instrumental tool and a key aspect of supply chain management. It also helps organizations to improve order management, ensure OTIF deliveries, avoid unnecessary inventory expenses, and plan for future price fluctuations. By developing and implementing scalable demand forecasting models, organizations are more likely to achieve the desired outcome which eventually leads to better productivity and margins.

Demand forecasting challenges faced by businesses

As we move towards granular demand forecasts, its crucial to analyze several other external factors that influence market needs and customer purchase decisions. Though factors such as these may reflect in the seasonal trends, industry standards, and market dynamics that make up a time series, its crucial to incorporate them directly into the demand forecasting models. The challenges include:

  • Data discrepancies
  • Resource heavy analytics methodologies
  • Inefficient processes and demand plans

To learn more about the strategies to improve demand forecasting accuracy, contact our supply chain analytics experts.

How demand forecasting can contribute to the success of your business

Today most leading businesses use ERP software to generate forecasts for their products and services. However, such systems are generally not flexible and cannot be modified to address the unique needs of businesses. And for this reason, it is now imperative for companies to deploy demand forecasting models that are tailored to the unique traits of each product category and geography. Better forecasts, in turn, will contribute to improvements in organizational and business performance, resulting in these benefits:

Enhanced customer service levels

Granular insights into factors impacting consumer demand and subsequent retailer ordering behaviors can help businesses in the effective deployment of inventory, ensuring higher fill rates, better on-time availability, and fewer stock-outs.

Fewer missed sales opportunities

Understanding the source of high demand will help you ensure that the right inventory is in the right place at the right time.

Better working capital management

Operating with the right amount of inventory can help companies better manage working capital, and this is bound to happen only when they are more confident about the generated demand forecasts.

Efficient production and manufacturing

A better understanding of demand will not just help optimize production schedules but will empower businesses to overcome challenges in manufacturing.

Enhanced resource utilization

Maintaining stocks that are just enough to meet the demand implies the products will be sold even before they reach their expiration date, in turn, minimizing wastage and spoilage of perishable stocks.

Reduced effort

Automating the demand forecasting processes enables companies to allocate more time to focus on selling, and it also helps save time and effort required to oversee the forecasting process.

Request a free demo to learn more about the potential of AI for demand forecasting and supply chain planning.

demand and capacity planning

Demand and capacity planning helped a leading retail company to improve accuracy in demand forecasting by 15%

A U.K based leading retail player wanted to reduce the percentage error in their demand forecasting approach. Due to the inconsistent nature of their existing demand and capacity planning processes, they were not able to manage their inventory stocks and ensure the easy availability of high-demand products.

Demand and capacity planning is an important method that helps companies to monitor and improve their inventory management. The growing popularity of demand and capacity planning can be attributed to its ability to simplify the logistics value chain by integrating smarter demand forecasting and predictive analytics into the process of capacity planning. With obsolete demand forecasting processes, businesses had to rely solely on historic patterns of demand to plan for production needs. But analytics-based capacity planning strategies help businesses to gain better visibility into factors affecting their supply chain and also provides actionable insights relevant to actual scenarios.

Our demand planning solutions help companies to ensure fluidity and efficiency across all touchpoints in the value chain. Request a FREE proposal to gain detailed insights into our portfolio of supply chain analytics solutions.

Business Challenge

By leveraging Quantzig’s demand and capacity planning solutions, the client wanted to reduce their average percentage error in demand forecasting and improve productivity. Also, they wanted to understand and analyze the demand patterns across various regions. With the help of demand and capacity planning solutions, the client was looking to coordinate their capacity planning efforts in different countries, including rationalizing SKU’s, and consolidating suppliers to enhance their inventory management system.

Through our customized demand and capacity planning solutions, we help leading businesses to improve their forecast accuracy and maximize return on planning efforts. Get in touch with them right away!

Solution Offered and Value Delivered

The demand and capacity planning experts at Quantzig developed a robust demand and capacity planning framework to understand the core business challenges of the client. The framework included recommendations for capacity management and safety stock optimization. With the help of our demand and capacity planning solutions, the client was successfully able to improve the accuracy in demand forecasting by 15%, while simultaneously improving inventory management. Our multi-step, holistic demand planning approach helped the client to optimize their supply chain operations. Furthermore, the solutions that we offered enabled the client to insert what-if scenarios into their existing supply chain networks to automatically and accurately align operating capacity to demand and ensure optimal throughput, cost containment, and improve capacity management.

Request a FREE demo below to know how our end-to-end demand planning solutions can help you address the complexities of today’s competitive marketplace.

Quantzig’s demand and capacity planning solutions also enabled the client to:

  • Improve demand forecasting accuracy by 15%
  • Overcome out-of-stock scenarios
  • Improve production capacity and inventory management capabilities

Benefits of Demand and Capacity Planning

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Want to gain detailed insights into factors affecting demand and capacity planning? Read our latest article here:

Top 3 Factors Influencing Demand and Capacity Planning of Businesses

demand forecasting

Top 3 Demand Forecasting Challenges Facing the Retail Industry in 2019

In today’s data-centric world retail environment has grown even more complex. With the influx of consumer data, businesses like retail need to have a better mechanism for demand forecasting in order to improve their customer service and stay ahead of the competitors. A good demand forecasting model enables businesses to smartly use their historical data on consumers and help them to plan strategies for future trends. Also, demand forecasting techniques help companies to anticipate when the demand will be high and establish a long-term model that can help in business growth. Retailers with the help of demand forecasting model can eliminate their dependency on instinct and intuition for decision-making. However, demand forecasting seems to be easy but in practice, retail businesses face critical challenges in building a demand forecasting model that can help them to deal with the ballooning complexities in the retail environment. In this article, our retail industry experts have listed out a few challenges that players in the retail industry are poised to witness in 2019.

Want to know how demand forecasting challenges can affect your business in 2019? Request for more information below.

demand forecasting

Demand Forecasting Challenges

Challenge #1: Using an integrated system to track customers and business

Over a period of time, most retail companies have built out their operations and have deployed systems as they need them. This often means retailers have one system for their enterprise resource planning and another for customer resource management. Though such systems have solved the incremental needs of retail companies, the ongoing digital transformations along with the need to maintain interoperability have proved to be a barrier in two ways for retailers. First, it is resulting in duplication of information in both systems that create a siloed approach and impacts efficiency. Second, with such a system it is difficult to gain actionable insights into unstructured data sets. Lack of unintegrated system makes it difficult for retailers to improve their business operations.

Are you finding it difficult to analyze, monitor, manage, and benchmark your demand and capacity planning strategies? Our demand forecasting solutions can help. Get in touch with our experts right away.

Challenge #2: Applying the correct methodology for strategic decision-making

Retailers are making strategic decisions by setting goals for the company at large rather than for specific regions. Without a focused approach, retailers fail to gain visibility into where growth is expected. Also, such an approach does not help them to identify the regions that outperform in the competitive market and which ones underperformed against easy regional targets.  Therefore, having a proper demand management process in place is important for retail businesses to get away with instinct based decision-making.

Challenge #3: Leveraging unstructured datasets to forecast the next step

Today players in the retail industry are struggling to leverage external data or customer profiles effectively. Customer profiles offer detailed insights into what customers want enabling companies to understand demand better. Also, by using external data businesses can improve their accuracy of forecasts by accounting for external forces that were overlooked previously. Building demand forecasting models can make it possible for retail companies to distinctly segment customers and analyze the demands and preferences of target customer segments.

Our demand forecasting solutions can help you create automatic recommendations for the line-of-business to allocate, schedule, plan, and automate processes. Request a FREE proposal now to know more about our portfolio of supply chain services.

How can Quantzig help you take your demand forecasting to the next level?

Quantzig offers demand forecasting solutions that help businesses to create accurate demand capacity and plans. Our demand forecasting solutions and help companies to boost their forecast accuracy, improve service levels, manage portfolios, and maximize return on demand planning efforts. Quantzig, with its expertise in offering demand planning and forecasting solutions, empowers businesses to discover hidden performance drivers, increase profitability, improve collaboration, validate their business strategies, gain a 360-degree view of demand, and optimize ROI on operational spend.

Request a FREE demo below to find out how our customized analytics solutions can help you address the complexities of today’s consumer-driven marketplace.

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Weekly Round-Up: A Storyboard on The Benefits of Demand Forecasting Analytics

LONDON: Quantzig, a leading analytics services provider, has announced the release of their latest storyboard on the benefits of demand forecasting models and how it can help businesses identify new opportunities for revenue generation and cost reduction. With the growth of organizations globally, operations are becoming increasingly complex, leading to reduced visibility. Consequently, to remain competitive in the immensely aggressive and stressful global environment, there is a need for organizations to increase their operational efficiency across the supply chain.

Demand forecasting models can help companies in enhancing their supply chain visibility, demand forecasting methods, logistics optimization, and consequently enhance overall merchandising capabilities. Also, it can help businesses optimize their networks for improved efficiency and effective supply management.

Are you finding it difficult to have accurate inventory forecasting, achieve operational excellence in several activities, ranging from raw material procurement to order fulfillment? Get in touch with our experts now to know how our analytics solutions can help.

Quantzig’s demand forecasting models have helped more than 55 Fortune 500 companies to make data-driven decisions and tackle supply chain challenges and also offer them insights on people, processes, assets, and the entire value chain to facilitate quicker decisions for global supply chain management. Below, we have rounded up some of Quantzig’s recent success stories for this week and have also highlighted ways in which demand forecasting models have helped companies to predict needs of the customer and develop valuable and effective products and strategic plans to meet them.

#1: Demand forecasting models enabled to recapture 15% of the lost market share and increased revenue by USD 67 millionAccurate forecasting of the inventory and demand is a daunting task. Don’t you agree?  One of Quantzig’s clients faced the same problem. They approached Quantzig to leverage its expertise in offering supply chain analytics to identify different KPIs and devise robust demand forecasting models and improve inventory management efficiently. Consequently, our demand forecasting models proved very helpful for the client in gaining back 15% of lost share market in 10 months and increased revenue by USD 67 million.

Demand forecasting and inventory management delivers USD 67 million in revenues for switchgear manufacturer

#2: Insider tips to improve demand forecasting methods unveiled: Players in almost every industry are often posed with tough questions like how much of certain products or services to stock, which brand will perform the best, what is going to be the busiest time of the year. There are a few things that are easier to predict while some are very difficult. This is where demand forecasting models help. Therefore, it is advisable for businesses to use demand forecasting models to improve their business operations. You must go through some of the most useful insider tips to enhance your demand forecasting methods.

Insider Tips to Improve Your Demand Forecasting

#3: Demand forecasting models boosted service levels by 25%: This is one of the most significant success stories of Quantzig, where the client managed to determine their lead times and stock replenishment levels. This boosted their service levels by 25%. Moreover, demand forecasting models also helped the company to manage demand planning and levels and improve the overall customer service and experience.

25% improved service levels achieved by leading consumer goods manufacturer through demand forecasting and inventory management model implementation

#4: Demand forecasting models enhanced demand forecast accuracy by over 90%: Is the inability to meet the demand jeopardizing your company’s market position? If yes, then you must be going wrong somewhere in forecasting the demand of your customers which is very crucial to improve the efficiency of your operation and ROI. This is evident in Quantzig’s latest success story, where demand forecasting models helped the client to gain high accuracy in supply and demand predictions over time.

#5: Demand forecasting models optimized cash flow and minimized inventory costs: Quantzig’s demand forecasting models helped the client to align sales and marketing efforts to lower holding costs and increase turnover rates. Additionally, the unique demand planning and demand forecasting methods helped in optimizing inventory and foresee market trends effectively. Furthermore, the effective demand forecasting methods proved to be very helpful in predicting customer demands and save on warehouse and transportation costs.

Minimizing Inventory Costs and Optimizing Cash Flow for a Retail Industry Client – Quantzig’s Demand Forecasting Engagement

Are you wondering how to establish an effective demand management process, improve order fulfillment ratios, and boost operational efficiency to facilitate quick time-to-market? Request a free now!

#6: Demand forecasting models facilitated end-to-end visibility on supply chain journey: Improving end-to-end supply chain visibility and achieving high customer satisfaction during order fulfillment may sound scary. But you need not fear if you have effective demand forecasting models in place. A leading firm in the distilled spirits manufacturing sector was dealing with the same issue but experienced a great change in the demand and supply chain by leveraging Quantzig’s demand forecasting models. These models helped them to identify the areas of optimization to ensure greater product delivery and re-strategize their sourcing locations by examining the effect of supplier location and transit times on the design-to-market time of a product.

Supply Chain Analytics Helps A Distilled Spirits Manufacturing Major Improved Their Demand Forecasting Efficiency

#7: Demand forecasting models augmented conversion rates significantly: Are you wondering how to develop a hybrid supply and demand forecasting strategy to precisely predict demand? Demand forecasting models can help as it helped one of Quantzig’s clients. Demand forecasting models have the potential to enhance customer knowledge resulting in increased conversion rates. Additionally, these models are beneficial in inventory forecasting, predicting closed-loop marketing outcomes leading to better demand management.  

Quantzig’s Supply and Demand Forecasting Engagement Helped a Renowned Pharmaceutical Industry Client Precisely Predict the Demand for Pharmaceutical Products in the Australian Market

#8: Leveraging demand forecasting models to boost profit margins: Do you really think developing demand forecasting models is a mystery? If yes, then you must go through our latest success story where Quantzig’s demand forecasting models boosted the client’s profit margins significantly. With demand forecasting models, it is easy to become customer-centric through tailored services. Furthermore, proper demand planning and demand management are very helpful when it comes to critical decision making by harnessing consumer demand.

#9: What are the most important steps to successful demand forecasting? Demand forecasting methods are the keys to estimate the probable demand in the future for a product or a service accurately. These methods can be very effective and helpful for organizations in managing risk, dealing with competitors and government laws. But to get optimum results from your demand forecasting techniques, it is important that you follow a few important steps.

Four Vital Steps to Successful Demand Forecasting

#10: Demand forecasting models revamped forecast ability by 80%: Are you too facing the challenges by the regulatory laws, dynamic nature of customer expectations, market dynamics, and the ongoing technological advancements? If yes, then you are not alone as every industry player today facing the same issue. But demand forecasting models may hold the key to success. These models can evaluate the forecasting methods adopted by the peers and implement the best forecasting technique to avoid adverse impacts on their bottom line.

Demand Forecasting Helps a Healthcare Logistics Company Enhance their Demand Forecasting Ability by 80% – A Supply Chain Analytics Case Study by Quantzig

We understand the challenges companies face in demand management, network optimization, and inventory optimization. Our analytics solutions provide best-in-class frameworks to analyze spend data, improve category management practices, and consolidate the supplier base to increase contract compliance and reduce operational costs. Request a free demo to gain more insights.

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