Demand Management

Improve Your Sales Forecast Accuracy

 

 

Demand management is how you oversee and manage customer demand. It involves understanding what your customers want, plus the necessary steps to fulfill those wants. This helps you plan for upcoming demand, and make sure you’re in a place to meet it. In this article, we’ll show you how to use demand management to serve your business.

Demand definition

Demand arises when residents turn to the council to fulfil a need. This could be something simple such as reporting fly-tipping to the council, or paying a council tax bill. But demand can also be complex and require long-term resources, such as the need for residential care following a hospital admission.

There are different types of demand that councils inadvertently create which can be managed more effectively. These include:

  • Demand which is avoidable. This is a need that can be better met by other means or channels.
  • Demand which is preventable. This is when things could have been done earlier which would have prevented the need arising in the first place.
  • Demand which arises from failure. This is when demand is caused by the very system designed to respond to demand in the first place.

In all of these cases, managing demand begins by recognizing the root causes that drive demand. The behaviors, expectations and default actions of both residents and service providers can magnify and multiply demand. Any attempt to manage demand, while also seeking to improve outcomes, must be based on an understanding of how people – both those using and delivering services – behave, and what they want, need and aspire to.

 

What is demand management?

Demand management is the process of managing customer demand. Essentially, demand management looks at the logistics of demand—what your customers want, and how to get it to them. When you’re managing a business, as we know in sedApta, planning ahead for demand means you can plan for potential bottlenecks and volatility, so you’re able to react more quickly and keep the supply chain in motion.

In the manufacturing process, demand management is often done after supply chain management (when you manage your procurement and suppliers) but before portfolio management (when you build out projects to act on your management plans). Demand management is very cross-functional, because you’re bridging the gap between consumer demand, supply teams, inventory and customer service.

Specifically, demand management means improving the accuracy of sales forecasts; for this reason, the adoption of software tools to support forecasting and production planning activities brings great benefits, such as:

  • Improved service level
  • Reduced stock and purchasing costs
  • Optimized seasonal stock and distribution of production and logistics resources
  • Optimized stock levels for each branch and warehouse.

Demand Management Strategy

Demand management strategies refer to the systematic planning and implementation of techniques to influence and control customer demand for a product or service. It involves various methods aimed at aligning demand with the available capacity, resources, and business objectives.

Effective demand management strategies are crucial for businesses to maintain operational efficiency, maximize revenue, minimize costs, and enhance customer satisfaction. They require continuous monitoring, analysis, and adjustment to adapt to changing market dynamics and customer preferences.

Demand Management: The sedApta Suite tool to benefit from production planning

Statistical Sales Forecast

Allows time series creation based on survey catalogues that can be configurated thanks to features such as:

  • Business event management
  • Customized aggregation level of time series
  • Dynamic library of analysis algorithms
  • Various statistical error measurements
  • Automatic calculation functions of the algorithmic best fit for the time series considered with configurable parameters.

Collaborative Sales Forecast

Allows manual data forcing actions at different aggregation levels. Forcing on forecasts allows users to better manage:

  • Special events
  • Promotions
  • Sampling
  • Storage and management of special event effects for their rescreening
  • Prompt interventions on each data aggregation level
  • Forcing on past events to drive the forecast
  • Forcing on forecast values
  • Trend analysis for the distribution of forced values at high level on lower levels
  • Forecasting support for the introduction of new items/areas/customers/markets
  • Cloning/editing/mixing of historical values.
Statistical Sales Forecast

Allows time series creation based on survey catalogues that can be configurated thanks to features such as:

  • Business event management.
  • Customized aggregation level of time series
  • Dynamic library of analysis algorithms.
  • Various statistical error measurements.
  • Automatic calculation functions of the algorithmic best fit for the time series considered with configurable parameters.
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Collaborative Sales Forecast

Allows manual data forcing actions  at different aggregation levels. Forcing on forecasts allows users to better manage:

  • Special events
  • Promotions
  • Sampling
  • Storage and management of special event effects  for their rescreening
  • Prompt interventions on each data aggregation level
  • Forcing on past events to drive the forecast
  • Forcing on forecast values
  • Trend analysis for the distribution of forced values at high level on lower levels
  • Forecasting support for the introduction of new items/areas/customers/markets
  • Cloning/editing/mixing of historical values.
Read More
Read Less

About Sales & Operations Planning

Value creation across the planning horizon

Optimizing Sales & Operational Planning is, in today’s demand-driven markets, key to enable companies to reach their business goals. If your company aims to achieve “best-in-class” performance and surpass the industry competition, it must be able to implement an efficient business S&OP process, which will only be as effective as the technology it utilizes.

DISCOVER MORE ABOUT SALES & OPERATION PLANNING

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