With the wealth of information available to businesses and consumers with just a few taps of the screen, things change very quickly. So quickly, in fact, that your company could be suffering unnecessary losses.
One kind of supply chain management software (SCM) you can invest in is demand planning software. Demand planning software keeps businesses abreast of shifts in the market, and communicates these changes to the supply chain. But this has larger implications across many processes. Here’s what else the best demand planning software can do.
Analyzing Demand
It can be difficult for companies to know what to do with the wealth of data available now. Demand planning software can now make forecasts much more accurate, because it can better explain why demand is where it’s at. This means decreased latency in meeting or adjusting to these demands.
Adjusting Inventory
Nothing beats off a customer faster than the words “out of stock”, or seeing that an order will be fulfilled at a date later than usual. With the proper demand planning software, businesses can make all of the sales available to them by having the appropriate amount of inventory in stock – the clearest benefit to improved accuracy in forecasting.
Profits
This is really why businesses should spend on software. The entire focus with demand planning software is profit, so you’re essentially spending on future profitability. With valuable data generating forecasts you can rely on, you’ll make wiser inventory investments and be able to supply orders on time.
Employee Retention and Satisfaction Across Relationships
Streamlining processes and increasing efficiency across all departments and with other businesses encourages a team-oriented environment. Not to mention, management that makes good decisions which provide company-wide positive impacts is excellent for morale and retention. Fewer mistakes, miscommunications, and misunderstandings opens the door for real collaboration, as well as continued education, all of which boost the growth of your business.
Make Changes Fast
An abrupt change of plans can be costly for your business. Superior demand planning means that you are able to outperform the competition at a moment’s notice. Overall, it gives management the power to make informed real-time decisions, so businesses never have to sit on their hands as productivity and sales begin to slip. Instead, you have a clear idea of what’s about to occur with a product, and you can re-strategize accordingly.
Integration: Factors to Consider
When switching your company over to supply chain software, one may be tempted to go as big or small in price as they think is necessary for the size of their business. The truth is, cost is a consideration that should be knocked further down the list.
Features you should focus on include various aspects of forecasting, and whether or not seasonality is relevant to your company. From, there, it’s imperative that your software be scalable, so you can make future upgrades and changes.
Many businesses still misunderstand what demand planning software can really do for them. Fortunately, that’s what this kind of software is all about: making the unknown known. Fast, accurate forecasts mean you’re never left in a lurch with inventory, trends, and demographics.
