Most industries’ supply chains have struggled with disruptions in the past few years, whether timing, efficiency, and revenue. These days, flawless coordination is required to keep the supply chain agile and resilient in the midst of a volatile operating environment. Some organizations have opted to outsource data entry and other tasks in the supply chain to keep it running efficiently.
In the enterprise risk management magazine Security, the shift from reactive to proactive supply chain models was cited as a way to ensure supply chain security. Organizations stock up on higher quantities of inventory to prepare for black swan events. However, stockpiling isn’t always the answer because it consumes extra warehouse space and accumulates costs too. Companies should employ efficient supply chain forecasting strategies, which are a crucial part of demand planning.
Proper demand planning helps strike a balance between satisfying customer demands on time without excessive stockpiling of inventory levels.
What is demand planning?
Demand planning is a process that involves forecasting and predicting the demand for products to ensure that they are delivered on time to customers. Demand is sensitive to macroeconomic shifts, natural disasters, and other crises. As such, demand planning should be a collaborative supply chain function that needs full participation of all players in the supply chain.
One of the most commonly known areas of demand planning is statistical forecasting, where historical data are processed with advanced statistical algorithms to produce forecasts. Outliers like seasonal shifts should already be factored in.
Data from the overall product life cycle or product portfolio management provide insights on how the demand for one product will influence the demand for others. Trade promotion management will also give the same insights.
When can demand planning go wrong?
Demand planning is a multi-sectoral effort. Not having a clear structure can mess up the process because you’ll have a difficult time holding members of the team accountable for their roles.
Real-time visibility is practically a requirement in the modern supply chain. You can only remedy leaks if you have a clear picture of what goes on in every part of the chain. Aside from real-time visibility, your data should be accurate.
Outsource data entry for better demand planning
Data entry is tedious, time-consuming, and practically a job of its own. Not many organizations treat it as such though. Your supply chain can function better if the players spend more time addressing demands instead of reporting data all day. Leave accurate reporting in the hands of seasoned data entry specialists from outsourcing companies that have experience in English-speaking markets. Book a call with MCVO talent to outsource data entry to their veteran team.
