Tag: Demand planning methods

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

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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.

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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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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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Know Where to Draw the Line with the Help of Demand Forecasting

What is demand forecasting? 

Demand forecasting refers to the scientific and systematic estimation of the demand for a particular product in the future. Customer demand is highly dynamic and unless companies correctly chart out the demand patterns and determine the amount of goods to be produced, the chances of overstocking or understocking of goods are likely to occur. Leveraging demand forecasting techniques also helps companies to identify what customers are buying and improvise on products that are not faring well in the market.Demo

Demand forecasting methods 

Adopting demand forecasting methods helps companies to cope with seasonality, sudden changes in demand levels, price-cutting maneuvers of the competition, strikes, and other major swings of the economy. Here are some of the top demand forecasting methods that can help companies plan their production cycles smartly:

Predictive analytics

This is one of the most effective demand forecasting methods that use mathematical principles to predict consumer behavior based on the current or historical data. Predictive analytics leverages data on how a company’s products appeal to and interact with the customers. This analysis involves the interpretation of consumer trends and making assumptions based on recent/past trends. One of the major drawbacks of such demand forecasting methods is that the extrapolating current data doesn’t give insights into the future because of unforeseen problems that may occur.

Delphi method

The Delphi method is known to be one of the oldest demand forecasting methods used. In this technique, experts are surveyed anonymously. The survey includes several rounds, and after each round, a summary is formed, which is then converted into another question. These summaries and questions are then handed over to the expeGet More Inforts, which can either sway their opinion or they can have it remain the same. This process is repeated multiple times until the experts arrive at a consensus on the decision.

Client intent surveys

Such demand forecasting methods are undertaken to identify what the customer intends to buy in the future. This is especially useful if the company is planning on introducing a new product to the market. You might often come across such surveys before entering a company’s website or accessing certain video contents. The questions are usually in the form of a scale to evaluate how likely their chances of are of purchasing a particular product.

Conjoint analysis

It is important for companies to identify the most important attributes that consumers are considering when buying a product. Trade-offs are common in the case of most goods, hence, it is important that they identify why consumers are picking a certain product and what they value the most. Using demand forecasting methods, such as conjoint analysis, businesses can collect data on the most favorable attributes of an item, which will help find out what exactly consumers value more. They do this by having consumers rank their preferences of features, which then is translated into a report by an analyst that shows what customers prefer.  


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Supply and Demand Planning: How Demand Planning Methods Can Help Top Medical Device Companies

What the Client Wanted

Identify and implement demand planning strategies to drive market growth and make their supply chain more streamlined. Also, the client was looking for an effective way to enhance revenue forecast, improve profitability, and align inventory levels with the peaks and troughs in demand.

The OutcomeRequest Proposal

Quantzig was approached by the medical device manufacturer to help them fine-tune their forecasting and demand planning methods. Our analytics experts helped the medical device company identify and implement the requisite improvements in their demand planning methods with a quick turnaround time of about four weeks.

This enabled the client to improve forecast accuracy, user productivity, and improve utilization. Quantzig aimed to assist the client to achieve its organizational objectives for operational efficiencies, enhances brand growth, and market excellence.

Market Overview for Top Medical Device Companies

The MedTech market changes constantly with new advancements and innovations in medical devices, IoT, medical IT, and healthcare technology. This has prompted top medical device companies to collaborate and develop medical devices that help save lives while meeting the regulatory requirements along with the industry standards.

The more you face supply and demand volatility, the more critical it is for you to interpret their impact and respond accordingly – and this is what top medical device companies have been facing for the past few years. However, effective demand planning is not an easy task, it requires organizations to admit their mistakes and move forward by implementing incessant improvement strategies to enhance business efficiency.

Though not utilized to its full impact, the use of analytics in demand planning is definitely the future worth investing in. Therefore, it is essential to leverage analytic solutions to be a part of a developing medical device industry by seeking an experienced company such as ours to assist you in your future endeavors.


Medical Device Industry Challenges

  • Increasing complexity of medical devices: The complexity of medical devices is gradually increasing owing to the proliferation of advanced healthcare technologies in the field of wearable medical devices. The complexities of medical devices also complicated the diagnosis and repair process, which, in turn, results in an increase in the cost of field service.Request Solution Demo
  • Growing competition: Globally, the competition from startups and spin-offs in the medical device industry has increased drastically, over the past few years. This has resulted in a decreased profit margin for manufacturers of medical devices. To tackle this, top medical device companies are now focusing on leveraging demand planning methods to fine-tune their strategies.

About the Client

One of the top medical device companies in the world. 

Client’s Challenge

Owing to the increasingly complex nature of businesses today, supply chain management methods are no longer adequate enough to make sense of data and help organizations adapt to the changes in demand volatility. The high promotional dependency of medical devices caused the demand to wax and wane by region and by market segment. The client – one of the top medical device companies – approached Quantzig to leverage its expertise in demand planning and devise demand planning strategies to increase sales and overcome wax and wane situations.


Demand Planning Benefits

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Business Impact

The shortcomings of the traditional supply chain management systems are compelling top medical device companies to realize the importance of incorporating demand planning to predict future demand patterns and respond quickly to the changing customer needs and preferences. The recommended demand planning strategy enabled the client to respond proactively to market demand by transforming the requirements into actions.

Demand Planning Solution Insights

An efficient system that integrates the best supply and demand planning strategies means a radical departure from the traditional demand planning methods. This requires companies to redesign their entire system including the demand management strategies and demand forecasting methodologies to optimize and actively keep track of demands by integrating analytic methodologies to drive intelligent responses.


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