Tag: factors affecting demand and supply planning

Supply chain analytics

Unveiling the True Potential of Supply Chain Analytics

Supply chains are lucrative platforms for gaining a competitive advantage. This is because of two reasons which include their complexity and their role in defining the cost structure of a company.  With the growing data complexity, most companies are finding it difficult to model their trade-offs of growth and supply chain cycles such as the procurement process. This is where supply chain analytics can help.

By leveraging supply chain analytics solutions, companies can fine-tune their entire supply chain network in ways that was probably not possible in the past. Supply chain analytics can help in effective supply chain management and identification of inefficiencies in supply chain configurations. It has the potential to improve the end-to-end performance of the supply chain in terms of financial, operational as well as managerial aspects. Therefore, it is high time that companies realize the potential of supply chain analytics in a real sense.

The growing complexity and globalization have put supply chains into the limelight like never before.

At Quantzig, we understand the difference that supply chain analytics can create in the supply chain operations of a company. And to help companies deal with the logistics and transportation challenges as well as improve the supply chain strategy, our team of experts has highlighted a few major benefits of supply chain analytics that can act as a guide for companies to understand market volatility, the impact of indirect supply chain cost and improve ROI.

Looking to improve efficiency across the supply chain but wondering where to start? Get in touch with our experts.

Benefits of Supply Chain Analytics

Gain a significant ROI

Supply chain analytics has the ability to analyze the structured as well as unstructured data. The insights gained from such data can help companies to respond quickly to customers’ demand maintaining integrity and accuracy.

Understand the risks better

Supply chain analytics can help in identifying the known and unknown risks. Also, it can assist in predicting future risks by identifying trends and patterns across the supply chain.

Improve accuracy in planning

By analyzing customer data thoroughly, supply chain analytics can help businesses to precisely predict future demand. Also, it guides an organization in decision-making regarding production by analyzing customer demand and market trends.

Achieve the lean supply chain

Supply chain analytics can be used by companies to monitor the responses of stakeholders, warehouse, and customer needs for data-driven decisions.

Our supply chain analytics solutions help businesses to tackle challenges such as reduced visibility and inefficient operations across the supply chain and also offer them actionable insights to facilitate quicker decisions for global supply chain management. Request a FREE proposal to know more about our portfolio of services.

Prepare for the future

Companies are leveraging advanced analytics for supply chain management. Advanced analytics has the potential to process both unstructured and structured data to offer organizations a competitive edge. Also, it sends timely alerts that facilitates better decision making. Furthermore, supply chain analytics can establish a correlation among different sources and minimize risks.

5 C’s of Supply Chain Analytics

Connected

Supply chain analytics makes unstructured data from various social media platform and structured data from the Internet of Things (IoT) accessible.

Collaborative

Supply chain analytics enhances collaboration with suppliers across the entire supply chain through cloud-based commerce networks.

To know how our analytics solutions can help you in quick and accurate decision making, request a free demo below.

Cyber-aware

Using analytics in the supply chain also ensures the security of the supply chain from cyber hacks and intrusions.

Cognitively enabled

Using analytics in the supply chain improves the capability of the supply chain through automation. It helps in coordinating, collating, and conducting decisions across the entire supply chain.

Comprehensive

Supply chain analytics offers comprehensive and fast insights in real-time as latency is something that is not acceptable in the future supply chain.

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Demand analysis

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

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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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demand forecasting models

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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