Demand Planning

Anticipating and managing demand to ensure operational effectiveness

Demand management (statistical forecasts, promotions, new products, end of life, etc.) is a key process and often a precondition for optimizing Supply Chain performance.

Like the entire Supply Chain, demand management must exist at all levels of the company:

  • Strategic forecasting with a highly macroscopic approach, that takes account of global trends and market strategy, will be the entry point for the operational strategy, and, in particular, the service strategy more
  • Monthly tactical forecasts, which are at the heart of demand management for make-to-stock models, are the entry point of the S&OP process
  • At the operational level, demand management should incorporate:
    • A more in-depth breakdown of the monthly forecasts
    • The adjustment of the forecasts in line with market behavior
    • Consideration of firm orders

In addition to the implementation of effective IT tools, the reliability of the forecast depend on the company’s ability to:

  • Deploy collaborative processes that define the roles and responsibilities of each party involved, in line with both best practices and the specific features of the company (products, customers, etc.)
  • Qualify, quantify, summarize, and share information within the company (and, in some sectors, clients)
  • Measure performance and empower, or even incentivize the parties involved (Supply Chain, Marketing, Sales, etc.)

How can Argon Consulting help you?

  • Identifying challenges related to existing deficiencies and estimating the cost of overhauling the organizational structures and tools in place (case for change)
  • Overhauling processes and the development of collaborative working methods with in-house (Supply Chain, Marketing, Sales, etc.) and external parties (customers, suppliers, etc.)
  • Clarifying the target organizational structure in terms of skills, scaling, organization (central vs. local, by product line or by market), and roles and responsibilities
  • Integrating the demand planning process with all other processes in a consistent manner with the company’s Supply Chain model
  • Developing highly tailored models (management rules, statistical models, levels of aggregation, etc.)
  • Implementing alerts, KPIs, and scorecards
  • Selecting and implementing tools with which to draw up deployment forecasts (specifications drafting, management of calls for tender, deployment strategy, implementation assistance, project management and risk management, etc.)
  • Deploying an improvement plan (training, fine-tuning of models, etc.) and managing change (in culture, behavior, skills, communication, etc.)

Case Studies

Development of a program to reduce stocks and cut logistics costs
Deployment of Supply Chain processes, teams and information system
Adapt the purchasing and supply chain organization to support strong international growth
From the supply chain vision to the deployment of processes and the implementation of a supply chain planning information system
Optimization of a leading petrochemical company’s MRO supply chain
Boost performance by cutting stocks and improving the service rate by overhauling the processes and deploying supply chain planning tools
How we helped a leading European consumer goods supplier to build and deploy a flow management and supply chain planning target vision
Development of a stock reduction program
Transformation projects in the aeronautics sector: critical for supporting sector growth
Drivers for reducing inventory and increasing flexibility in the pharmaceutical industry