We use a structured approach that aligns business goals, refines forecasting methods, and enhances decision-making. Below, we outline the key activities that drive successful implementation across all seven stages
Key Activities:
The first step is to align demand planning with business goals. This involves conducting stakeholder interviews to understand priorities and key drivers. Forecasts are then adjusted to support specific business objectives, such as optimizing cash flow, reducing excess inventory, or improving service levels.
Key Deliverables:
- Clear Business Objectives Document: Goals like inventory turnover and cash flow priorities defined.
- Driver-Based Forecasting Framework: Alignment of forecasts with business drivers (e.g., seasonality, growth targets).
Key Activities:
We often compensate for limited historical data by customizing forecasting methods that are developed based on business cycles and available insights. Trends and external market factors are incorporated to ensure forecasts remain practical and relevant, rather than purely data-driven.
Key Deliverables:
- Customized Forecasting Models: Models tailored to business size, cycles, and available data.
- Data Gap Analysis Report: Identification of data limitations and mitigation strategies.
Key Activities:
Forecasts need to keep pace with business events and associated uncertainties, rather than simply relying on historical data. We help customers create playbooks for scenarios such as major customer/market gains/losses, unexpected drop in product demand due to regulation, etc.
Key Deliverables:
- Scenario Analysis Reports: Insights from “what-if” scenarios to prepare for uncertainties.
- Dynamic Adjustment Playbook: Clear guidelines for quick forecast adjustments
Key Activities:
Effective demand planning requires input from sales, operations, and finance teams. Cross-departmental workshops help align priorities and resolve conflicts. Our consultants mediate discussions to ensure a balanced approach and assign clear ownership of the forecasting process.
Key Deliverables:
- Cross-Functional Alignment Workshops: Sessions to align sales, finance, and operations goals.
- Communication Plan: Regular updates and shared understanding of forecasting priorities.
Key Activities:
Forecasting is an ongoing process that requires regular evaluation. Performance reviews are conducted to assess accuracy, and root cause analysis is performed for any deviations. Forecasting models are refined based on lessons learned, ensuring continuous improvement.
Key Deliverables:
- Forecast Performance Report: Regular review of accuracy and areas for improvement.
- Continuous Improvement Framework: Guidelines for iterative enhancements to forecasting models.
Key Activities:
Software plays a crucial role in automating data collection and reporting. The right tools are selected and configured based on business needs, and users are trained on system functionality. However, human oversight remains essential, with manual overrides applied when software-generated forecasts don’t align with business realities.
Key Deliverables:
- Software Fit Assessment Report: Evaluation of tools aligned with business needs.
- Automation Blueprint: Clear documentation of tasks automated by software.
Key Activities:
Different stages of a product’s lifecycle require distinct forecasting approaches. For new products, analog forecasting techniques are used due to limited historical data. Forecasts are refined during growth and maturity stages based on emerging trends. Finally, end-of-life planning ensures a smooth phase-out, preventing excess stock and financial losses.
Key Deliverables:
- New Product Forecasting Plan: Techniques for predicting demand without historical data.
- Phase-Out Strategy Document: Plan for managing inventory during product phase-out