Demand Planning and Forecasting for an Equipment Manufacturer
As the marketplace is becoming increasingly competitive, traditional demand planning and forecasting methods are no longer helping manufacturing companies to identify and adapt to the increase in demand volatility. Consequently, companies in the equipment manufacturing industry are facing difficulties in managing production and transportation operations. This necessitates equipment manufacturing companies to redesign their supply chain management model by leveraging demand planning and forecasting solution.
The client is an equipment manufacturing company based out of Sweden.
The client’s lack of adaptability to demand volatility in the market caused huge losses for the company. Also, they faced difficulties in forecasting the demand for their products in advance and managing production and transportation accordingly. As a result, the company encountered a huge loss in their market share for two consecutive years.
The client approached the experts at Infiniti Research to leverage their expertise in offering demand planning and forecasting solution. By leveraging Infiniti’s demand planning and forecasting solution, the client wanted to efficiently forecast future demand patterns and respond more nimbly to changing market needs.
In addition, by leveraging Infiniti’s demand planning and forecasting solution, the client wanted to:
Increase adaptability to demand volatility – The unexpected market changes and demand fluctuations were making if difficult for the client to accurately forecast products demand. By leveraging Infiniti’s demand planning and forecasting solution, the client wanted to enhance the efficiency of supply chain operations and forecast product demand accurately.
Better internal and external team collaboration: Due to demand management challenges, the client faced challenges in seamlessly collaborating with suppliers and vendors. With Infiniti’s demand planning and forecasting solution, the client wanted to identify and adapt to market changes to better manage internal and external collaboration.
Focus on profitability: By identifying the target stock levels that are required to meet the rising demand for products in advance, the client wanted to develop flexibility and scheduling so they can respond to market fluctuations in a nimble manner.
The experts at Infiniti Research conducted market scanning and monitoring analysis to help the client identify factors impeding the product demand in the market. Our experts also analyzed the company’s past five-year data to forecast demand-supply shifts and identify seasonal fluctuations. The next phase of the demand planning and forecasting engagement involved a demand management study, where the experts helped the client to deal with issues pertaining to analyzing and estimating the market demand for their products.
Our experts also conducted an inventory forecasting analysis, where they analyzed a broader set of variables including seasonal changes, competitor offerings, and demand patterns to help the client to proactively identify product demand and plan inventory. In the last phase of the demand planning and forecasting analysis, our experts conducted a competitive intelligence study. This phase of the engagement helped the client to understand how their competitors managed supply chain operations and adapted to unexpected demand volatility in the market.
By leveraging Infiniti’s demand planning and forecasting solution, the client was able to integrate supply and demand planning. This helped them to subsequently reduce the risks of stockouts and overstocks. Also, they were able to reduce inventory cost and improve operational efficiency. In addition, the client was able to improve communication between their internal and external groups. Furthermore, the company was able to curtail losses in market share and enhance profit margins by 31%.