Is Your Demand Planning Process too Demanding?

And Yet, It’s Still Not Supplying the Results You Need?

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Demand Planning is all too often a painstaking exercise that struggles to involve the multiple stakeholders and ultimately yields less than optimal results.

An accurate demand plan is crucial to a company’s operations performance because it drives supply, inventory, and production planning. However, many companies struggle to determine the ideal demand forecast simply because there are so many variations of it – from sales, marketing, finance – and it is difficult to keep it aligned with the ever-changing demand situation.

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While sales and operations planning (S&OP) software and traditional demand planning solutions build a better plan, the challenge in today's volatile environment is that the plan will never be completely right. With this in mind, companies must combine demand planning with a strategic capacity to monitor and adjust the portions of the demand plan that present a variance.

Demand Forecasting

Produce a constrained, consensus forecast that combines the statistical demand forecast with multiple functional forecast perspectives, weighted and adjusted as part of a highly collaborative process, and all orchestrated and documented with a single planning system.

Demand Variance Response

The real value is in the ability to respond rapidly when the reality begins to deviate from the demand plan through iterative analysis and collaborative what-if analysis to simulate the necessary course corrections.

Demand Conversation

You must understand demand from multiple perspectives, which means looking at and analyzing demand at different product hierarchies (tying the highest level demand signals – product family forecast – to the very lowest level raw material component) with the ability to aggregate and disaggregate at will. It also requires presenting demand in the appropriate context for different stakeholders; therefore, representing it interchangeably in units or currency.

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The RapidResponse® Demand Planning application supports multiple demand planning functions:

  • Statistical demand forecasting
  • Collaborative consensus demand planning
  • Forecast accuracy and forecast value added (FVA) analysis
  • Volume and mix planning (using units and currency based-planning through hierarchical disaggregation/aggregation)
  • Assumption management
  • Range forecasting (optimistic/pessimistic)
  • Historical demand forecast review
  • Product lifecycle forecasting
  • Multiple scenario what-if planning and demand plan comparisons

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Kinaxis RapidResponse meets the demand planning challenges of today's manufacturers by ensuring integrated and collaborative processes.

THE RESULTS?

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Improved demand forecast accuracy and process improvement.

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Demand collaboration across functions (sales, marketing, finance, demand planning) for holistic planning and analysis across a range of planning and action alternatives.

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Ability to integrate demand functions with other supply chain planning functions, including product lifecycle management for example.

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Better visibility into demand trends with an ability to maximize revenue opportunities to drive growth and resolve demand and supply risks to minimize costs.

S&OP Scenario Planning Customer Quote

Displaced SAP APO Customer Quote

Cross Functional Supply Chain Visibility Customer Quote

With RapidResponse, our forecast response to the customer has improved by at least 50 percent. It has also enabled customer planning collaboration, thus improved forecast planning.

IT Manager, Large Enterprise Electronics Company
www.techvalidate.com/product-research/kinaxis-rapid-response
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Hubbell - RapidResponse and Demand Forecasting