Planning your demand and supply chain is the delicate process of trying to balance demand and supply, potentially across the globe and in a way that it provides your company with the right combination for cost control, lead times and service level. Companies within the consumer packaged goods industry (CPG) don’t have it easy. They must compete on cost while maintaining margins, improving quality and elevating customer service. This is the reality and the challenge of the CPG demand supply chain.
Demand and supply chain planning enables manufacturers to control supply chain complexity and helps improve customer satisfaction while reducing inventory levels and costs. It provides company’s in real need of solutions with specific capabilities for Demand Planning, Distribution Planning, Production Planning, Procurement Planning, Sales & Operations Planning (S&OP) and Network and Inventory Optimization. DSCP is an enterprise-proven, functionally rich advanced planning solution that helps global manufacturers operate more effectively and improve margins.
Demand and supply chain planning (DSCP) helps companies improve forecasts and gain visibility into the value chain to better identify and respond to market fluctuations.
DSCP helps companies realize several benefits, by;
Demand and supply planning system allows companies to sense and respond to market demand in a way that is hierarchical around products, time, geographies, channels, and also attributes. In turn, the management of downstream data and demand signal can contribute to improving the efficiency of the supply chain by shortening demand latency in other to help organizations forecast more accurately while improving forecast quality.
The integration of supply and demand planning means that managers have to collaborate more closely with internal departments and external partners or vendors. Relationships with supply chain partners are elevated above buy-sell transactions to include joint coordination and planning, as well as the first willingness to share both information and risk. This need for seamless collaboration results in the adoption of technological solutions to improve the operational efficiency of the entire organization.
The cross-functional structure that facilitates demand and supply planning also helps organizations to focus on customer-centric metrics that create higher value for both companies and customers. Instead of focusing only on a “make what we can sell” approach, organizations and growing businesses adopt a “how best to effectively serve each customer” mindset in which trade-offs are considered with a holistic approach that takes into account total costs in relative to revenue potential.
Any organizational structure that supports an demand and supply chain planning management implies that the decisions made by executives not only affect their own units, but also the overall performance of the company. They are empowered to make decisions with a wider impact that serves the purpose of maximizing the overall value created for the company and its customers.
Integration of demand management into the supply chain turns the focus to customers and how their needs can be met profitably. This focus often leads organizations to streamline their processes and develop fluid and flexible schedules so that they can respond to market fluctuations in a nimble manner.
When managers consider both the supply and demand side of business, they are able to understand the bigger picture and in turn make better decisions on resource allocation. This approach creates the most value for customers, fulfills consumer product demands, and thereby generates more sales.
Comprehensive information on customer demand and profitability allows managers be proactive in their decision-making processes. They make short-term decisions that help flex their operational capacity to maximize margins. Organizations can capitalize on market opportunities through a customer-centric lens and mobilize quickly in a bid to respond to changes in customer demands. Decisions can be made to prioritize key customers that utilize profit.