Industrials

Demand Management And Strategies

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<p>Demand management is a planning methodology that ensures that the demand for something stays the same as the available amount. Organizations use it to forecast and plan how to meet the demand for services and products.&nbsp;</p><p>It improves connections between operations and marketing. The result is tighter coordination of strategy, capacity, and customer needs.</p><p>Demand management processes help organizations gather valuable insight and agility, and improve the ability to plan and forecast while increasing the visibility into customer demands.</p><p>It is far more robust than developing a demand or a sales forecast. Improper demand forecasting results in more supply chain costs and low margins.</p><p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://kradminasset.s3.ap-south-1.amazonaws.com/ExpertViews/Manojpic1.PNG" width="587" height="345" /></p><p>&nbsp;</p><p>Organizations are competing to apply new technologies and analytics to make their supply chains more efficient, reduce inventory, and improve customer satisfaction while improving profitability. This implies the need to have an effective process for demand management.</p><p>&nbsp;</p><h2>Demand Management and Capacity Management</h2><p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://kradminasset.s3.ap-south-1.amazonaws.com/ExpertViews/Manojpic2.PNG" width="504" height="163" /></p><p>&nbsp;</p><h2><span style="font-size: 14pt;">Demand Management Strategies</span></h2><p>Systematic demand management requires high-quality data that teams then analyze continuously with a periodic frequency, depending on the external environment and type of business.&nbsp;</p><p>The process includes updating forecasts based on that data to inform strategies.</p><p>Today's demand management strategies focus on cost reduction, revenue enhancement, and streamlined operations. Here are some top-demand planning strategies to help enterprises get customers the goods they want and when and where they want them.</p><p><strong>Bring demand signals together</strong></p><p>To accurately forecast the demand, companies need to understand how many widgets they will sell across multiple sales channels, Griswold said.</p><p>&nbsp;</p><p><strong>Create a holistic understanding</strong></p><p>Using the supplier lead time strategically is critical for a successful demand planning.</p><p>Demand planners have to understand what the rest of the organization is doing, so that they are not unprepared and have either the wrong kind of inventory or insufficient inventory.</p><p>&nbsp;</p><p><strong>Team up with customers</strong></p><p>Many important supply chain strategies rest on communication, including communication with the external supply chain stakeholders.</p><p>Closer collaboration with the customers, including asking them to share their ordering plans, can help an organization lower its inventory carrying costs.</p><p><strong>Partner with suppliers</strong></p><p>A list of top demand planning strategies would not be complete without discussing about the supplier relationships.</p><p>Suppliers can offer valuable insights into their requirements and capabilities, such as determining short- or long-term requirements for certain products, developing forecasts, and providing key information about their inventory levels and capacities.</p><p><strong>Provide demand planning training</strong></p><p>The demand planning process is a complicated and multi-faceted system. There are several contributions made from all over the company.</p><p>With so many parts working together in this cross-functional dynamic, it is vital that the companies keep their employees well-versed and trained on the importance of their input.</p><p>&nbsp;</p><h2><span style="font-size: 14pt;">Factors Affecting Demand</span></h2><p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://kradminasset.s3.ap-south-1.amazonaws.com/ExpertViews/Manojpic3.PNG" width="546" height="345" /></p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p><span style="font-size: 10pt;"><em>This article was contributed by our expert <a href="https://www.linkedin.com/in/manoj-kulkarni-yermalkar-6a7334189/" target="_blank" rel="noopener">Manoj Yermalkar</a></em></span></p><p>&nbsp;</p><p>&nbsp;</p>
KR Expert - Manoj Yermalkar