Do you know how effective a demand planning software can be? No, then understand it through an example. Think of yourself as a marketing manager and your job is to promote a company’s product to increase its sales. You have used the best marketing strategy to promote the product; as a result, its sales have increased. However, you have forecasted its demand to be low and now there is a shortage of company’s product that you were promoting. It will affect the company’s profitability and you adversely.
Being a manager it was your job to sell the product but when there is no product what will you sell. This whole scenario explains that only supplier selections and marketing strategy are not enough for your company. Right demand forecasting is very crucial which depends on the effective demand planning. This usually affects the manufacturer as with the right estimation of how many customers will buy their product they can produce the product and procure materials for its manufacturing. In short, if demand planning is done correctly then you can easily manage the resources and production.
About demand planning software
Planning Software gives an estimation of expected demand for a product or services to business using the relevant information and sales data. It performs a statistical analysis of the given information to provide an automatic result. To generate the final result it uses market and rebates intelligence and inputs such as pricing discounts if any, launches and discontinuations of new product and marketing promotions results.
Reasons to use demand planning software
Here, we have outlined the key benefits that any company will get from the software.
- Increased speed- it processes the data faster and gives automatic results to multiple users even if the inputs are received simultaneously.
- Accuracy– software has high data integrity to securely store and retrieve the data. Also, it performs continuous checks on user inputs that results in enhanced accuracy.
- Efficiency- it simplifies the input workflow of users through standard processes. Moreover, the recent data is refreshed automatically that ensures higher efficiency levels.
- Cost savings– less number of resources are required along with enhanced efficiency and accuracy that reduce the requirement of overall inventory.
- Flexible and scalable– software is capable of handling unparalleled flexibility and large data thus improves the scaling of the business.
Common features of such software
Here we have listed some of the commonly available features that software offers for effective demand planning.
Statistical analysis-the software uses a relevant statistical model and historical sales data to create a forecast. It also considers the external economic factors and combines it with forecasting to provide an improved demand plan.
Management of product life-cycle-it analyzes the marketing activities, price, rebates, new product launches, product discontinuation and more.
Performance management- analyzes the real-time forecast with actual deviations, track shipment issues, potential inventory, exception and trend reporting.
Collaboration, segmentation, and simulation of different scenarios are also its features. A right demand planning software offers all the above features with some advanced features.