Archive for demand forecasting

Inventory Optimization is the Lynchpin to Omnichannel Success

Success in omnichannel commerce requires solutions designed for the way customers shop today. Retailers should look for a demand forecasting and inventory optimization solution that understands digital demand is now being fulfilled through physical stores and can account for channel demand patterns and emerging omni-fulfillment strategies.

Read More →

Supply Chain Planning – Graduating From Demand Forecasting 101

I am currently updating ARC’s Global Supply Chain Planning (SCP) market study, as I stated in my LV post two weeks ago. The study divides the SCP market into four application functionality areas, one of which is demand management. Demand management applications offer a comprehensive set of functionality. They are used to organize, structure, manage and perform analysis on a large amount of data that is typically too unwieldy for spreadsheets. The analytical capabilities in […]

Read More →

Guest Commentary: Predictive Replenishment and How It Optimizes Global Supply Chains

Leading consumer goods companies are adopting a breakthrough methodology, Predictive Replenishment, which generates value by integrating strategic, tactical and operational processes. This supply chain planning approach encompasses three functional areas: Strategic: Supply Chain Network Design that continuously adapts and links products flows to downstream processes Tactical: Demand Sensing and Inventory Optimization that predicts customer requirements based on market-driven demand signals and POS data Operational: Order Fulfillment and Transportation Planning that can create perfect orders and […]

Read More →

The Toughest Forecasting Problem: Demand Management in Oil & Gas Industry

“Oil is becoming increasingly difficult and costly to recover, and the problem of managing the supply chain and profits has become more complex than ever. After weathering the economic downturn, the industry must boost capacity for future demand, and keep a close eye on the economics of oil and gas production.” So wrote my colleague Allen Avery, in a recent ARC Insight report titled “In an Uncertain Economy, Oil & Gas Industry Spending Must Stay […]

Read More →

Nestle Waters and Weather-Driven Demand

Earlier this week, a colleague brought to my attention a company called Planalytics.  Actually, at a supply chain conference several years ago, I attened a presentation by a manufacturer that was attempting to use Planalytics Business Weather Intelligence in their supply chain planning processes.  At the time, weather-driven demand planning seemed interesting, but not ready for prime time.  However, if you go to Planalytics’ website today, you’ll find several recent customer presentations, many of them […]

Read More →

Macroeconomics and Business Forecasting: A Conversation with Barry Keating

Professor Barry Keating of Notre Dame, coauthor of the leading college textbook on business forecasting (which actually has more buyers from businesses than from college students), was gracious enough to talk to me recently.  The topic was using macroeconomic data to adjust forecasts down for coming recessions, or up when economies begin to grow again. One of the points he made is that companies and forecasters in particular need to pay attention to the Index […]

Read More →

Demand Management vs. Demand Sensing

On April 22nd RedPrairie issued a press release announcing that it was adding “flowcasting” to its product suite.  Despite reading the press release carefully, I couldn’t fully grasp what “flowcasting” was.  Fortunately, RedPrairie’s management team visited us the next day and we discussed this new solution. It turns out that “flowcasting” is synonymous with “demand sensing” and “sense and respond”.  The industry has not settled yet on a single term to describe this emerging class […]

Read More →

A Supply Chain Problem I’d Like to Have

I recently wrote a piece called “The Reset Economy” where I argued that for various macroeconomic reasons demand may not bounce all the way back after the recession ends.  Consequently, there will be too much capacity in many industries.  I believe this is the biggest supply chain problem many companies will confront over the next few years.  However, in certain industries, demand will always be hard to meet for certain “hot” products, a problem many […]

Read More →

Let’s Make a Deal: How Demand Management Applications Learn

There was a “let’s make a deal” brain teaser that appeared in the “Ask Marilyn” column in Parade magazine several years ago.  Readers were asked to suppose they were a contestant on the television game show “Let’s Make A Deal.”  The host tells you that there is a car behind one of three large doors on the stage.  The other two doors have either a small gift or a goat behind them.  You get to […]

Read More →