The Steps Involved in Demand Planning
What is the ultimate goal of a business manufacturer? If you own a business then you must know the answer to this. Some may say that the goal is to earn maximum profits; some may say it’s to get the maximum market share and so on. Everybody has a different answer but most of them will not address the core objective of a business. To convey the accurate answer, we can say the ultimate goal of any business is customer satisfaction. If the customer is unhappy with your product or service then there is no benefit in producing that product. Most of the organizations face the issue of unhappy customers and due to that, they indulge in promoting their product, spending a lot of money.
To increase your consumer base and devise the perfect strategy, you can take the help of demand planning software developed by Halo. The definition of demand planning can be summarized in a few words “Having the right product, at the right place, at the right time, and at the right price, to satisfy customer demand”. This process is of utmost importance today due to the degree of volatility of the market, it’s imperative that you understand the market and consumer behavior to achieve a better growth.
The process of demand planning has certain steps that are followed by every tool and software:
Statistics forecasting: The first step is gathering all the historical data related to the product. It’s rightly said that history is the best indicator of the future. The algorithms inserted in the software will analyze the data and present a trend line of the past performance of the product bringing you one step closer to the future prediction of consumer behavior.
In the next step, the software will analyze some market-driven strategies and put the product on a test of these strategies to determine the best plan for the product. These strategies revolve around the best promotional plans for the product.
Following them, the tool with gather all the current market knowledge and building a base for the product and its eventual results and then deciding on the best forecast scenario.
The process goes on in circles, gathering new data at every step and then making the perfect plans according to the data collected. This process can be utilized for both long-term and short-term strategies.
The whole supply chain management process is important for every organization, with the power of IT tools and data management collaborating it with all the departments of the company you can not only increase your sales but you can consistently satisfy your customers irrespective of the market condition and its behavior.