Tag: demand management

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.

credit risk modeling

5 Best Practices to Improve Purchase Order Flow Management

A purchase order is a document that authorizes a purchase transaction. This document mentions product descriptions, prices, discounts, quantities, date of shipment, terms of payment, and other terms and conditions.  When the seller accepts all the terms and conditions mentioned in the purchase order, then the contract becomes legally binding on both the parties. A purchase order is used by the finance department of any company for forecasting and budgeting. Therefore, purchase order flow management becomes very essential for businesses that deal with large volumes of purchase orders. If any business fails at purchase order management, it can lead to chaos in the procurement and finance department. However, streamlining and organizing purchase order flow management is a time-consuming process for businesses. In this article, our supply chain analytics experts have highlighted a few best practices, implementation of which can help companies to improve their efficiency within their purchase order flow management process.

We understand that manual purchase orders are inefficient and time-consuming to maintain, which is why we have developed advanced analytics solutions to help you tackle this challenge. Get in touch with our experts right away.

purchase order flow management

Best practice #1: Assess existing workflow

For your purchase order management system to work efficiently, you need to track and analyze the existing process as designed and used on a day-to-day basis. An in-depth analysis of purchase order workflow can help you identify bottlenecks in the manual purchase order system. Also, it can guide in planning the purchase order lifecycle and can further help in addressing other inefficiencies in the business operations.

Best practice #2: Establish a central supplier directory

Establishing a central supplier directory can be a significant step towards improving purchase order flow management. This can help in enhancing the quality of information about different suppliers as well as communication across the different levels of an organization. Centralized repositories can further help in reducing the level of effort needed to retrieve and manage information throughout the organization. Additionally, it provides quality information leveraging which data analytics experts can visualize and implement strategic improvements.

Quantzig’s analytics capabilities help companies analyze the lifecycle of purchase orders, right from the order creation stage to its closure. Request a FREE proposal now to know how.

Best practice #3: Improve authorization processes

Purchase order flow management is sometimes sabotaged by the inefficient authorization process. A disruption in the purchase order management process can occur if manual paper processes are practiced or too many signatures are required on a single purchase order. Therefore, it is important to improve the authorization process.

Best practice #4: Quality Assurance

To have a better purchase order flow management system in place, accurate data entry of purchase order into the system is very important. Businesses should put a series of quality checks in place to ensure that all the required details have been accurately filled. Such details include purchase quantity, price, shipping details and whether the products are taxable or non-taxable.

We help our clients with our purchase order flow management solution to automatically reroute in-transit inventory to wherever it is needed the most. Request a FREE demo below to know more.

Best practice #5: Cancellation Process

To improve the purchase order flow management system, procurement teams in any organization need to be very careful about the cancellation process. They should accept cancellation only when it is properly formatted and documented in an e-mail or a hard copy of cancellation is forwarded to the procurement team from an authorized signatory. This can help in preventing procurement fraud and can help in improving the vendor-buyer relationship.

Want to learn more about the best practices to follow for your purchase order flow management? Request for more information below.

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capacity planning

Demand and Capacity Planning Helped a Machine Manufacturing Company to Reduce Demand Forecasting Errors by 10%

A leading player in the machine manufacturing industry wanted to reduce the percentage error in their demand forecasting approach, which was approximately 45%. The inconsistent nature of their current demand and capacity planning processes curtailed their ability to manage inventory stocks and ensure the ready availability of high-demand products.

The Business Challenge

Demand and capacity planning turns out to be a crucial factor when it comes to simplifying the logistics value chain. It’s growing popularity can be attributed to its ability to integrate smarter demand forecasting and predictive analytics into the capacity planning process. Unlike the obsolete demand forecasting processes where businesses had to rely solely on historic demand patterns to plan for future production needs, analytics-based capacity planning strategies empower businesses to tailor their production capacity to more accurate demand forecasts that account for numerous variables across the supply chain.

Embrace the power of analytics-based demand management solutions to gain a leading edge in the market. Request for more information now!

The client wanted to leverage demand and capacity planning to reduce their average percentage error and drive productivity. One of the core objectives was to analyze and understand the demand patterns across various regions. To do so the client chose to partner with Quantzig to leverage its demand and capacity planning solutions to coordinate their capacity planning efforts in different countries, including rationalizing SKUs and consolidating suppliers.

Solutions Offered and Value Delivered
To help the client tackle their challenges, we developed a robust demand and capacity planning framework, which included recommendations for capacity management and safety stock optimization. By leveraging demand and capacity planning solutions, we successfully reduced the total average percentage error to less than 10%, while simultaneously improving capacity management. The result was a multi-step, holistic framework developed to optimize the client’s supply chain operations. However, a significant factor of success was the comprehensive consideration of costs, real-time demand patterns, and lead times when determining the best way to maximize ROI through capacity management.

Request a FREE demo to understand how we can help you manage production capacity based on accurate, real-time demand forecasts.

Furthermore, we also improved the accuracy of demand forecasts with added business constraints, such as minimum order quantity, ordering intervals, demand patterns, and total lead times to identify and quantify risks associated with out-of-stock scenarios. The use of analytics dashboards further improved the efficiency of their demand and capacity planning process.

Quantzig’s advanced analytics solutions also enabled the client to:
• Improve demand forecasting accuracy
• Overcome out-of-stock scenarios
• Improve production capacity

From demand forecasting to capacity planning, we have the expertise and the domain knowledge to address all your supply chain challenges. Contact us to know more about the benefits of our demand and capacity planning solutions.

demand and capacity planning

Top 3 Factors Influencing Demand and Capacity Planning of Businesses

Demand and capacity planning forms an integral part of any manufacturing business irrespective of its size. Every manufacturing facility benefits from the logistical and financial potential of demand and capacity planning methods. This method includes the systematic use of resources through a proper estimate of production needs. Demand and capacity planning help manufacturing businesses to identify underutilized resources and opportunities. Also, demand and capacity planning enable businesses to manage demand based on business priorities and make smart and well-informed decisions. However, coordinating supply with current demand is a daunting task for manufacturing companies and is influenced by several factors. Here in this article, our team of experts has highlighted a few factors to help companies optimize their production schedule and supply process and excel in the competitive business sphere.

Automating demand and capacity planning can help companies share updates in real-time across the supply chain and improve demand management. Get in touch with our experts to know more.

Demand and capacity planning

Top factors influencing demand and capacity planning

#1: Identifying the bottleneck

For efficient demand and capacity planning, it is important for companies to identify bottlenecks. To do this manufacturing businesses need to estimate the overall capacity relative to overall demand along with the capacity of individual resources. Also, skilled workforce is required as it plays a pivotal role in the chain of production and supply. This can further help in improving demand and capacity planning.

Our customizable supply chain analytics solutions can help businesses to synchronize demand planning with production and boost profitability. Request a FREE proposal now to know more about our portfolio of services.

#2: The unpredictability of constraints

Demand and capacity planning can be obstructed by the constraints such as inaccurate demand forecast, limited supply of raw material, unrealistic sales goals, and the unavailability of required skills. Therefore, to yield the desired outcome, it is important that companies conduct a thorough analysis of dynamic demand patterns and have accurately predicted the constraints.

Request a FREE demo below to know how our supply chain analytics solutions can help your business.

#3: Maximize capacity to meet demands

Without proper capacity planning strategies in place, it is difficult for businesses to deal with the variability in demand. Therefore, it is important that capacity should be maximized by adopting measures such as bringing equipment online that is not normally in use, outsourcing work to other suppliers temporarily, or switching workforce from one production area to another. Also, businesses can conduct realistic data analysis utilizing advanced supply chain data analytics solutions to make smart capacity planning decisions. 

Want to learn more about factors that can affect your demand and capacity planning strategies? Request for more information below.

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VoC analytics

How to Improve Your Profitability and Supply Chain Network with Demand Analysis?

Today’s business environment is highly competitive due to which leading business players find it challenging to sustain profitability and constant growth. With the advancements in technology, life cycles of products and services have shortened, customer demands have aggravated, new competitors have emerged, and new business models have brought in major transformations. This has created constant instability in the market due to which it has become crucial for businesses to analyze the market demand. Wonder how demand analysis can help you tackle these challenges?

For a proper demand analysis, it is important for companies to understand their customers, the buying behaviors and most importantly the capabilities of the company to serve the demand. This understanding can further help in identifying customer needs and market opportunities. Additionally, demand analysis has the potential to help companies in uncovering brand value, supply chain capacity and deal with existing business regulations.

We, at Quantzig, understand the difference that demand analysis and demand management can create for any business. And to help businesses to stay ahead of the competitive curve, our team of experts has come up with a detailed guide on-demand analysis. Also, they have examined the objectives of demand analysis and how it can play a key role in improving the efficiency across the supply chain, business decisions, product pricing, product development, and planning.

To gain a competitive edge in today’s competitive marketplace, it is highly essential to adopt a data-driven approach and analyze market trends through demand forecasting and customer analysis. Wondering where to start? Get in touch with us right now.

What is Demand Analysis?

For any organization, demand is a crucial aspect that defines business success. Demand analysis is the process that helps companies to make better decisions regarding cost allocation, product development, product planning, and production capacity. Thus, the process of demand analysis is important for companies to understand the demand for their products or services in the market and maintain the inventory accordingly. Also, there is a possibility that sometimes production may exceed the demand and demand analysis helps to uncover such instances. Consequently, companies can adopt other ways to create new demand in the market. 

What are the Objectives of Demand Analysis?

#1. Forecast market necessity

If you want to know about the kind of product or services needed in the market you are targeting, demand analysis is the approach to follow. With demand and supply analysis, companies can easily identify the products or services performing well in the market and driving maximum value beforehand. However, companies also need to analyze customer behavior and preferences before launching any new product or service.

#2. Sales forecast

Sales estimation forms an integral part of product development and planning. But to forecast sales, demand analysis and demand planning is the approach that helps. Companies can ensure their success if demand analysis of a product or service is done prior to its launch. Also, this can make it easier for companies to decide on the type and quantity of services or products to be launched.

A data-driven approach to demand management can help organizations in inventory optimizations and consolidate supplier base to reduce the cost of operations. Request a FREE proposal to know more!

#3. Determining price

Price is one of the main factors that affect demand. So, demand analysis is crucial for determining the price of a product or service. Different customers have different requirements. Some prefer luxurious products while others prefer only the products which are necessary. Therefore, it is important for any company to leverage demand and supply analysis prior to determining the price of a product or a service.

#4. Maximize profit

Companies before defining the profit margins for their products or services, need to analyze demand. This helps in ranking them in the order of priority and prevents the interference of government regulations. The categorization of goods and services can be efficiently by following the approach of demand analysis.

#5. Firm size determination

Demand forecasting and analysis help companies to select the right size of a firm for their business. Large size firms have different requirements than small size firms. The former is suitable if there are chances of the demand for a particular product to increase in the future while the small size firms are suitable if you are targeting a niche market. The size of the firm is directly proportional to the demands of the consumers. Therefore, demand analysis is extremely crucial for businesses to make decisions in such cases. 

#6. Deciding the success and failure of businesses

Demand analysis is the direct method to analyze the success and failure of any business. Companies to succeed in the competitive marketplace, need to analyze their customers and forecast the customer demand in advance. If any business delivers exactly what is needed by the customers, it is highly likely that it will succeed while the companies that fail to do a proper demand analysis tend to taste the failure.

#7. Financial arrangements

Financial arrangement is important to run any business. So, demand analysis helps in deciding the financial arrangements according to the market demands and customer requirements.  Also, this helps in ensuring the liquidity within the organization and facilitates a proper demand management process.

#8. Strategic planning of supply chain

To minimize costs associated with supply chain processes, it is essential that the business strategy synchronizes with a tactical supply chain plan. This can be done by following a proper demand analysis process. Consequently, the company’s profit can be increased, and the value of the shareholder will be enhanced.

Want to know more how demand analysis can make a difference to your business? Request a free DEMO now!

Benefits of Demand Analysis

  • Sales forecasting
  • Demand manipulation
  • Demand planning
  • Product improvement
  • Improve pricing policy
  • Enhance market share

How can our analytics solutions help?

Global growth of organizations has resulted in complex business operations and reduced supply chain visibility. Consequently, organizations, in order to, overcome stressful global business environment and stay ahead of the curve, need to improve the efficiency of their operations across the supply chain. Our analytics solutions help organizations to deal with these challenges and offer them actionable insights into market trends through proper demand analysis, demand forecasting and demand planning model on real-time dashboards. Also, we offer our clients with the right frameworks to identify key performing metrics in the market which facilitates quicker decision making and better customer service.

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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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