Do you know that information sharing can effectively reduce your inventory levels and help business in efficient demand planning? Most planners are aware of this fact, yet are unable to utilize it to its fullest potential. Certainly, there are challenges not only for the planner but also for the data team.
Challenges faced by demand planners
The globalization of supply chain generates a colossal amount of data. To manage and utilize it appropriately has become the biggest challenge with questions like:
How much of data is required for an accurate and unbiased prediction?
What all data is required to provide an end-to-end visibility of supply chain?
How to analyze confusing variety of data to get a meaningful insight?
With today’s fast paced technology and the evolution of real-time data, the usage of it to draw business meaning such as KPIs and alerts are now looming as the biggest competency challenge among industries. Real-time data not only helps in reactive decision but also considerably brings down the planning time. More importantly, it helps a business take a more proactive approach to planning and facilitates increased collaboration and process improvements.
Even though the data team succeeds in using the historical data to draw meaningful insights for their business, the planner still struggles to identify the best algorithm to generate an accurate and unbiased forecast! Today there are a lot of algorithms, which can forecast with high accuracy, but to use them for a set of data requires time, decision, data understanding etc., and adding to planner woes, most of the time the forecast error is too high.
Learn more about information sharing and demand planning
On Thursday, September 27th 2018, Krypt proposes to address some of these pertinent issues that challenge businesses globally through a webinar on SAP IBP “Information Sharing and Demand Planning” . SAP IBP integrates disparate departments within a supply chain process to collaboratively share information in effective demand planning.
Why is data quality the greatest challenge?
- Tricky process of converting huge data
- Variety of data
- Which data to be used for what
Which is the most important step for demand planning process?
- Prepare data for demand planning
- Incorporate sales and marketing intelligence
- Monitor demand planning
Name one step that you find is a major challenge in Demand planning?
Register for our webinar to find out more!