Demand Planning and Forecasting Solution for a Manufacturing Firm
With increasing demand fluctuations, manufacturing companies now face greater difficulties in predicting and responding to evolving customer demands. Also, manufacturing companies are under the pressure to revamp their supply chain management strategies to gain a stronger foothold in the market. As such, manufacturing companies are now partnering with firms like Infiniti Research to leverage their expertise in offering demand planning and forecasting solutions. By leveraging demand planning and forecasting solution, businesses can maintain a fast and agile supply chain that adapts easily to fluctuating demands and production needs.
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Business Challenge
The client is a food manufacturer based out of Germany. Globalization, fast-changing market conditions, quality issues, regulatory compliance, and technological advancements posed supply chain challenges for the company. Also, the client was facing issues due to a high number of unfulfilled orders, inaccurate demand forecast model, and rising inventory holding cost due to inappropriate planning. The client engaged Infiniti Research to develop an approach to tackle these supply chain challenges.
Also, with Infiniti’s demand planning and forecasting solution, they wanted to:
Adapt to the fast-changing marketplace – The client was facing increasing pressure to adapt to a fast-evolving marketplace by effectively catering to the needs of the increasing population. With Infiniti’s demand planning and forecasting solution, they wanted to effectively manage the company’s production and distribution processes.
Efficiently deal with unplanned production changeovers – During conditions of stock-outs and overstocks, the client had to deal with unplanned production changeovers to keep up the business. However, this heavily impacted the company’s overall profits. With Infiniti’s demand planning and forecasting solution, the client wanted to gauge the potential market demand and maintain adequate stocks to deal with unexpected demand fluctuations.
Reduce product obsolescence cost – With increasing obsolete inventory, the client witnessed a dip in their overall revenue. With Infiniti’s demand planning and forecasting solution, the client wanted to accurately forecast the product demand in advance and reduce product obsolescence cost.
In today’s competitive marketplace, manufacturing companies will need to incorporate efficient demand planning techniques to adapt to fast-changing market conditions. Solutions Offered
The engagement involved a market research study to understand market transformations and developments. The experts also assessed the company’s business processes and analyzed the challenges. The next phase of demand planning and forecasting engagement involved a demand management study. Infiniti’s demand management study helped the client to analyze and estimate evolving demands in the market and deal with issues related to supply-demand mismatch. The experts also conducted a market intelligence engagement. This phase of the demand planning and forecasting analysis engagement helped the client to stay abreast with market transformations and gain insights into the factors impeding the food product demand in the market. This helped the company to efficiently deal with unplanned production changeovers by maintaining adequate inventory. With Infiniti’s demand planning and forecasting analysis, the client was able to adapt to fast-changing market conditions, reduce product obsolescence cost, speed-up their production process, and enhance sales. Also, with Infiniti’s demand planning and forecasting solution, the experts supported the client in efficiently managing their production and distribution process. This subsequently helped the client to enhance supply chain efficiency and achieve savings by 23% in operational cost.Results Obtained
