There’s an old song lyric “wherever I lay my hat that’s my home” (…attribution to Marvin Gaye). Aside from a short stint living in Europe, I’ve always lived in Boston, MA. First it was because my friends and family all lived here. As I got older, and progressed in my career, I stayed in Boston because of different reasons. There was excitement in the air: creative work in the city with smart people doing great things.
When I joined the world of software as a business analyst from manufacturing, I was naive. How so? I never fathomed the amount of money that commissioned software sales personnel make selling software. This high level of compensation drives extreme behavior.
Good handling of market demand data is one of the most vital concepts in any supply chain. The correct management of demand information can greatly influence the level of integration and responsiveness and has a direct impact on customer service and inventory levels. If customer demand is the activating element in the supply chain, it’s quite clear that a multi-step operational supply chain management process to create reliable demand forecasts can play an active role in improving supply chain effectiveness. But how to create a powerful demand planning?
Demand driven supply chain has been a buzz word for quite some time now and the key to that is “demand planning excellence”.
I had the opportunity to interview an award winning, fast moving, consumer packaged goods company in the early 2000’s. They were recognized as one of the best supply chain companies in the United States by all of the major retailers and their CPG peers. Indeed, it seemed every time a new award was developed this company or one of its executives would take home the honors.
Over the years I have seen hundreds of forecasting, demand planning and S&OP technology projects completed. Each project is unique and succeeds or fails because of its own circumstances, but common to all projects are essential features that help ensure success. If you focus on these key elements, your chances of a successful technology project increase dramatically.
Here are the 10 key elements that I believe drive a successful S&OP technology project:
Maybe you are doing your demand forecasting completely wrong. OK, to be more precise, there are two equally important outputs of demand forecasting and you may be focusing nearly all your energy on only one, and maybe even the wrong one.
At John Galt Solutions, we noticed a major trend in 2015 with our customers: a marked increase in confidence that their businesses will grow healthily over the next 1-3 years. This expectation subsequently beget other major strategic and tactical initiatives for our customers.
To prepare for growth they needed to refine their processes and ensure they had the right technology solutions in place to support those processes. In particular, many companies are maturing in their sales and operations planning (S&OP).
How to be Careful with Using Forecast Accuracy as a Job Performance Metric