The DemandCaster Demand Planning process helps improve the accuracy of forecasts through robust cross functional collaboration along with the inclusion of point of sale data and trade promotions. DemandCaster is designed to help user move from the traditional spreadsheet-oriented demand planning approach to one that eliminates surprises, proactively prepares for spikes in demand, and minimizes the bull-whip effect that many organizations are faced with using traditional methods.
There are 5 primary components available in the DemandCaster demand planning process:
- Time Series Forecasting: This method uses historical sales and/or orders to identify patterns in historical demand and drive those demand patterns forward. This is the most basic demand planning approach available in DemandCaster when the only data available is sales history.
- Demand Sensing: This method supplements the time series forecasting demand planning process to pull in real-time demand data to shorten the time needed to address market changes not reflected in sales history. This is in contrast with the traditional time series forecasting which uses order-to-shipment data that can have 1-3 weeks latency in translating market demand to action. Point of sales data from customers is the most readily available data to help enable demand sensing.
- Demand Shaping: Applying techniques to stimulate market demand through new product launches, price changes, promotions, and other activities. Demand Shaping activities are managed in the 4-P (Trade Promotions) component.
- Human Overrides: This allows for sales or marketing to override demand plans based on information collected from customers that are not available through any of the automated demand planning methods.
- Demand Translation: Translating market demand through the organization. DemandCaster recognizes that the requirements for distribution, manufacturing and replenishment, are different. In this process, the forecast is based on “the selling unit” into the channel with “ship-to modeling.” The multi-location DRP module supports the activity of translating demand through the organizational network into a responsive supply plan.
The demand plan is a key component of the Sales and Operations Planning (S&OP) Platform. As your demand planning process continually improves you will experience improvements in inventory turns, a reduction in stock-outs, and an increase in revenue.
DemandCaster demand planning offers flexible forecasting. Users can also forecast at any level of aggregation including:
- Product Category
- Or any hierarchical level as required.