Tag: demand management

demand management

Infiniti’s Demand Management Solution Helped a Medical Devices Manufacturer to Achieve Average Savings of $7.2 Million

The US medical device industry is one of the world’s largest industries and is constantly being driven by the emergence of new technologies and innovative manufacturing methods. Though medical device manufacturing companies have witnessed unprecedented growth in terms of innovations and improved technologies in the last decade, such dramatic advancements have also given way for several challenges that loom over companies operating in the medical device industry. Owing to the increasing challenges in the market, companies in the medical device industry are increasingly leveraging demand management solutions to manage and allocate capacity to meet the markets’ increased demands.

Accurate demand management is critical and can sometimes be tricky. The information gained from a demand management engagement can be used in all aspects of a manufacturer’s business, including manufacturing schedules, inventory management, product positioning, and production planning. Request a FREE brochure to gain more insights into our services portfolio.

Business Challenge

The client is a medical device manufacturer based out of the United States. The company is well-known for manufacturing a wide range of healthcare devices. Inconsistency in the product demand, owing to fluctuations in the market made capacity planning quite challenging for the client. Also, due to their inability to meet the rising market demand, the client was unable to maintain the right balance between supply and demand, which resulted in reduced profit margins for the company. This necessitated the need to capitalize on these market changes through better forecasting and demand planning. To achieve this business goal the client had to enhance their demand management process by considering several factors that affected the demand of their medical devices.

Other challenges faced by the client included:

  • With growing advancements in medical technology, the medical device manufacturer was looking at implementing a robust method that would help them protect margins with products that elude commoditization.
  • The client was facing increasing pressure to adapt to a fast-evolving marketplace by effectively catering the needs of the increasing population.
  • The client faced major challenges in identifying long-term savings opportunities and areas for cost-reduction to facilitate product design and development.
  • By employing an effective demand management process, they needed to effectively manage the supply-demand shortages.

Solutions Offered and Value Delivered 

To help the client tackle all the industry challenges, the experts at Infiniti Research followed a comprehensive four-phased approach. The approach focused on helping the client accurately plan, predict, and meet the demands of the global customer base.

  • The initial phase in demand management approach focused on segmenting the market based on sales and ­­­marketing outcomes to analyze and anticipate different customer needs and long-term market trends. This turned out to be a fundamental factor that helped them align their business model and supply chain functions accordingly.
  • The second step in demand management process involved documenting the process roadmap, which included market gap analysis, a detailed analysis of success factors, and the roadmap for each stage.
  • The third phase of the demand management approach focused on bridging the cross-functional disconnect. The cross-functional disconnects were overcome by establishing KPIs.
  • The final phase in demand management process involved a detailed analysis of factors such as the number of consumers in the target market, demand for medical devices, proportion expected to buy the medical devices, anticipated timing of their purchase, and patterns of repeat purchases.

Insights obtained from Infiniti’s demand management engagement helped the client to formulate effective strategies for making smart decisions about inventory and production levels. This subsequently reduced the risk of stock-outs, resulting in lower holding cost and increased turnover rates. Also, the heightened visibility of their demand chain enabled them to capitalize on new opportunities to enhance the patient outcome and drive revenue.

Moreover, Infiniti’s demand management engagement also delivered tangible outcomes in their supply chain, most notably the cost savings obtained from inventory management and demand planning. Infiniti’s demand management solution further helped the client improve under-forecasting by nearly 3.5%, representing average savings of $7.2 million in a year.

Poor healthcare access and the growing demand for advanced medical devices represent a management dilemma between effectively managing demand and costs. Are you facing the same challenge? If yes, request a FREE proposal to know how our demand management solutions can help.

Why demand management is important?

In today’s competitive world, a number of companies are leveraging demand management solutions to meet the evolving needs of their business at every level. Demand management is a business process that enables organizations to respond to emerging situations in an effective manner by maintaining the right balance between supply and demand.

Engaging in demand management practices helps organizations to avoid gaps in supply and demand and also promote better supplier relationships. Demand management techniques also play a major role in addressing external spending factors, arranging purchase orders, and eradicating waste.

Customer demands are extremely dynamic and unless organizations correctly chart out the demand pattern and ascertain the amount of goods to be produced, the chances of overstocking or understocking of goods are likely to happen. Using demand management solutions, companies can understand customers’ requirements and improvise on products that are not coping well in the market.

Why partner with Infiniti Research?

In today’s increasingly competitive business world, there is an ongoing need to leverage demand management solutions across all aspects of your business processes. To survive in the long-run, companies have to possess the capability to react quickly to the ever-changing supplier and market dynamics. This is where the Infiniti’s expertise as a market intelligence solutions provider comes into play. Market intelligence solutions enable organizations to gain a holistic view of the market from various perspectives. The insights offered by our experts help businesses to develop customized products/services and marketing communication strategies that help customers distinguish the brand from their peers.

CONTACT US learn more about our solutions and their importance for your business.

demand management

A Step Towards Better Demand Management: A Round-Up of Popular Articles on Demand Management

LONDON: Infiniti Research, a leading market intelligence company, has announced the release of their new storyboard series on why demand management is the fundamental driver for business growth and strategy.

With increasing competition, market volatility, and changing customer demands, companies are facing difficulties in managing product demands and satisfying their customers. Also, instances of over-stock and stock-outs results in inventory issues. They further result in customer dissatisfaction, increased expenses, and loss of sale for the company. Finally, the end result is loss of company reputation, coupled with financial losses and customer churn. In the wake of these scenarios, most companies are leveraging demand management solution which can deal with nearly all of the above risks while enhancing their efficiency level.

Infiniti’s demand management solution has helped various organizations deal with issues pertaining to analyzing and estimating consumers’ demands and other challenges such as the availability of multiple channels and proliferating SKUs. Below we have listed some of our latest articles and success stories which will give solid reasons on why demand management solution is important for your business.

Are you facing similar challenges in your business? Our experts can help. Request a FREE brochure to gain more insight into our services portfolio.

#1: A guide to the core components of demand management: One of the common challenges faced by companies is to understand the consumer demand for goods and services that they offer. This problem does not end with understanding demand patterns and purchase behavior of customers. The actual magic lies in managing these demands accurately. A demand management process involves a wide range of components depending on the unique processes of each organization. This article discusses all the key components of demand management and their benefits for an organization.

A Closer Look at Demand Management and Its Core Components

#2: Enhancing demand chain visibility with Infiniti’s demand management solution: Stock-outs are reportedly  one of the biggest concern for businesses. For businesses that face stock-outs too often, there is a risk of losing customers. Also, it can hamper the overall growth of the company. This was the same case with a chemical manufacturer based out of US. As an organization that valued the importance of uncompromised customer service, the company approached Infiniti Research for a solution. Infiniti’s demand management solution helped the client to accurately manage inventory and enhance the customer experience.

Demand Management Solutions – How it Helped a Chemical Manufacturer Enhance their Demand Chain Visibility

#3: Healthcare providers increase reliance on demand forecasting: With demographic shifts and rapid changes in policies in the healthcare sector, predicting future healthcare demands isn’t an easy task. Our client, a healthcare company in North America wanted to improve their portfolio management ability by focusing on improving the efficiency of their services and responding proactively to market demands. Our demand forecasting solution not only supported the client to develop strategic relationships with customers and suppliers, but also enhanced collaboration to create an efficient and lean supply chain, and ultimately, a competitive advantage. Read this success story to gain detailed insights.

Demand Management: A Critical Factor in Healthcare Portfolio Management

#4: Three must follow demand management best practices for medical device companies: Medical device manufacturers often face roadblocks when it comes to making their demand management process efficient. This often results in operational inefficiency and issues pertaining to fulfilling orders. So, to help you out, our experts have unveiled some of the demand management best practices in our latest article. This article also highlights how following these practices will help you in tracking the medical devices and staying ahead of competitors.

Infiniti’s Demand Management Solution Helped a Medical Devices Manufacturer to Achieve Average Savings of $7.2 Million

#5: Accurately predicting sales and allocating budgets with demand management solution: Overstock of products often result in financial losses, as companies are compelled to sell the excess products at lower costs. Our client, a food manufacturing company was facing similar challenges. They wanted to leverage Infiniti’s demand management solution to predict future demand patterns and respond proactively to changing customers’ needs. Our solutions helped them accurately predict product demand and fulfill customer orders, which subsequently enhanced profit margin for the company.

Demand Management : How Infiniti Helped a Major Player in the Food Manufacturing Industry in Achieving Supply Chain Agility

Infiniti Research helps organizations deliver sustainable business improvement. Whether it’s about defining deadlines, or setting customizable options, and automating tasks, our solutions are sure to offer you assistance. Request a FREE proposal to know how.

#6: What are the demand management best practices? In today’s competitive world, a number of companies are leveraging demand management solutions to meet the evolving needs of their business at every level. Demand management is a business process that enables organizations to respond to emerging situations in an effective manner by maintaining the right balance between supply and demand. This article uncovers some of the demand management best practices.

A Closer Look at Demand Management and Its Core Components

#7: Achieving average savings of $3.28 million with demand planning solutions: Today, the construction equipment market is at a crossroad. Therefore, companies in the industry are facing difficulties in sustaining their market share. Our client based out of Europe was struggling owing to the fluctuations in the market. They faced difficulties in managing the market demand, which subsequently resulted in profit losses for the company. By partnering with Infiniti Research, the client was able to survive this stiff competition and secure a spot in the European construction equipment market.

Demand Management Solutions – How it Helped a Chemical Manufacturer Enhance their Demand Chain Visibility

#8: Realizing savings of 27% with Infiniti’s demand and supply analysis solution: Inadequate supply and demand management can result in over-stocks or stock-outs. Therefore, it is imperative for companies to adequately forecast market demand and manage inventory. This success story highlights how one of our clients was able to achieve a 13% reduction on unfilled order and increase demand forecast accuracy with demand and supply analysis solution.

Realizing Savings of 27% in Year for a CPG Company with the Help of Demand and Supply Analysis

#9: Top demand forecasting methods for your business: Customer demands are extremely dynamic and unless organizations correctly chart out the demand patterns and ascertain the amount of goods to be produced, the chances of overstocking or understocking of goods are likely to happen. Using demand forecasting methods, companies can find what customers are buying and improvise on products that are not coping well in the market. To help such companies, Infiniti has listed the top demand forecasting methods in this blog.

3 Popular Demand Forecasting Methods to Help Your Business Reach New Heights

#10: Achieving 17% reduction in unfilled orders with demand management solution: A leading food manufacturer’s failure to anticipate the product demand not only affected their sales rate but also eroded consumers’ trust. This subsequently resulted in huge losses for the company. Read the complete success story to know the initiatives taken by our experts which helped the company in better inventory management and cost savings.

Demand Management : How Infiniti Helped a Major Player in the Food Manufacturing Industry in Achieving Supply Chain Agility

CONTACT US to learn more about our services.

demand analysis

Evaluating the Importance of Demand Analysis for Your Business

What is demand analysis?

Demand analysis involves understanding the customer demand for a product or service in a particular market. Companies use demand analysis techniques to determine if they can successfully enter a market and generate expected profits to advance their business operations. It also gives a better understanding of the high-demand markets for the company’s offerings, giving them a fair idea on which markets to invest in. Demand analysis is one of the most important considerations for a variety of business decisions including sales forecasting, pricing products/services, marketing and advertisement spending, manufacturing decisions, and expansion planning.

Identifying market opportunities and meeting the market demand can prove to be challenging without appropriate expertise. Request a free brochure to learn how experts at Infiniti Research can assist you with smart solutions that cater to dynamic business needs.

Key factors affecting demand analysis

demand analysis

Common steps in market demand analysis

While there may be several methods of market demand analysis which varies according to the complexity of operations in the business, we have curated some of the commonly used steps for demand analysis:

Market identification

Identifying the specific and target market for the company’s products or services is one of the first market demand analysis steps. Surveys or customer feedbacks can be used to determine the current customer satisfaction levels. Comments indicating dissatisfaction can lead to improvements that will eventually enhance customer satisfaction. Although companies usually identify markets close to their current product line, new industries may be tested for business expansion possibilities.

Business cycle

After identifying the potential markets, the next step is to assess the stage of the business cycle in which that particular market is in. A business cycle ideally comprises of three stages: emerging, plateau and declining. Markets that are in the emerging stage indicate higher consumer demand and low supply of current products or services. The plateau stage depicts the break-even level of the market, where the supply of goods meets the current market demand. A declining stage indicates lagging consumer demand for the company’s goods or services.

Request a free proposal for more insights into our market intelligence solutions and learn how we can help enhance your business outcomes.

Product Niche

Once the market and their respective business cycles have been reviewed, companies will need to develop products or tailor their services to meet a specific niche in the market. Products must be differentiated from other peers in the market, so that they meet a specific need of consumer demand, creating higher demand for their product or service. It is also advisable to conduct tests in sample markets to determine which of the potential product styles is most preferred by consumers. Companies can also develop their goods in order to prevent competitors from easily duplicating their products or business strategies.

Evaluate competition

A crucial factor of demand analysis is determining the number of competitors in the market and their current market share. Markets in the emerging stage of the business cycle tend to have fewer competitors. This translates to a higher profit margin for your company. Once a market becomes saturated with competing companies and products, fewer profits are achieved and companies will begin to lose money. As markets enter the declining business cycle, companies must conduct a new market demand analysis to find more profitable markets.

GET MORE INFO on our demand analysis solutions for business :

Customer needs analysis

A Closer Look at Demand Management and Its Core Components

What is demand management?

Demand management, also known as consumption management or strategic spend management, involves controlling and tracking the requirements of different business units and other internal purchasing operations. Engaging in demand management practices helps organizations to avoid gaps in supply and demand and also promote better supplier relationships. Demand management techniques also play a major role in addressing external spending factors, arranging purchase orders, and eradicating waste.

Core components of demand management

A demand management process can involve a wide range of disciplines depending on the unique processes of each organization. However, on a broader level, a demand management plan generally encompasses these core components:

Forecasting

There is more to forecasting than merely loading data into a spreadsheet, forming a basic view of projected sales based on that data, and then adjusting the business plan accordingly. Including multiple scenarios in the forecasting process prepares the company for virtually any unexpected twist or turn.

Uncover the true potential of market intelligence solutions in enhancing your go-to-market strategy. Request a free brochure.

Supply planning

Irrespective of the industry, the marketplace is highly dynamic. Furthermore, there may be constant changes in the supplier landscape, wherein new suppliers may spring up in the market or an existing supplier may go out of business. But if companies are not prepared to meet these changes and only react when they occur, chances are that they may get left behind among the other players in the market. By maintaining deep visibility into the capabilities and business health of all the suppliers, organizations can be positioned for continued success irrespective of what happens in the global business climate.

Demand analysis

Basing the demand decisions only based on the sales data may be a huge mistake for companies. Most ERP systems record sales based on when a product has been shipped and not based on when it was first ordered. Only by keeping an accurate view of order history can they paint a realistic picture of the company’s demand—and then strategize on ways to meet that demand year after year.

Sales and operations planning

The idea that the supply chain organization can operate in a silo, free from the input of executives is outdated. Over the past two decades, organizations that make and sell products have embraced sales and operations to involve a wider range of stakeholders in every supply chain decision—and to incorporate supply chain information and needs into every business decision. 

Get one step ahead of your peers in the market with intelligent and agile business solutions. Request a free proposal to know how our solutions can help you achieve this!

Demand management

Demand planning vs demand management

Demand planning is the process of forecasting consumer demand for a company’s products or services well into the future. It is usually associated with sales, but it is closely tied to supply planning, which seeks to ensure that a company has enough supplies to meet the market demand. Ideally, a company’s demand-planning process helps maintain supply levels that meet demand or just slightly exceeds demand.

Demand management, on the other hand, is similar to demand planning, but demand management looks at consumer demand in the short term. Demand management is the oversight of current consumer demand to ensure that a business does not experience any loss of profits. Demand management is much more capable than demand planning when it comes to taking advantage of business opportunities in response to local events.

Get more info on our solutions for business :

IT services industry

Realizing Savings of 27% in Year for a CPG Company with the Help of Demand and Supply Analysis

Business Challenge 

The client, a leading CPG company in South America, was facing predicaments in effective supply and demand planning. With retailers increasingly producing and selling private label products and major competitors moving towards direct-to-consumer (D2C) models, the client, who continued to sell through distributors and retailers, faced challenges in creating best possible customer experience for end users. Also, complexities in their supply-demand planning, product development, sourcing, and production pressurized them to better manage inventory. With an appropriate demand and supply analysis, the client wanted to accurately manage product demands and fulfill customers’ demands seamlessly.

Is your inability to meet customers’ orders resulting in revenue losses for the company? Demand and supply analysis helps companies to thrive in today’s competitive market by identifying target stock levels to meet the rising market demands. Request a FREE Brochure to learn more about our demand and supply analysis solutions.

Solutions Offered and Value Delivered 

By examining historical sales data, product orders, shipments, and current sales, the experts at Infiniti Research helped the client to make smart decisions about inventory and production levels. Infiniti’s demand and supply analysis also helped the client to respond to dynamic market demand and focus on customer-centric metrics. By focussing on consumer-centric metrics, the client was able to increase adaptability to demand volatility. Our demand and supply analysis solution subsequently helped them plan inventory supply against demand and helped them to reduce the company’s inventory levels. Infiniti’s demand and supply analysis solution the client was able to improve return on inventory assets, reduce excess inventory, and meet customers’ delivery requirements.

With Infiniti’s demand and supply analysis, the client was able to achieve a 13% reduction on unfilled orders and increase demand forecast accuracy. This helped the company to realize savings of over 27% in a year.

Mismatch in demand and supply planning can result in excessive inventory costs. Is your company facing the same challenge? Our demand and supply analysis solutions have helped various companies reduce excess inventory and meet delivery requirements. Request a FREE proposal to know how our solution can help your business.

What is Supply and Demand Analysis? 

Demand and supply analysis is a type of supply chain management process that analyzes customers’ needs to determine the capabilities of the supply chain. With the right process in place, management can match supply with demand proactively and execute the plan with minimal disruptions. The demand and supply analysis process is not limited to forecasting. It includes synchronizing supply and demand, increasing flexibility, and reducing variability. If the demand outstrips resources, businesses can improve production or alert consumers about the revised shipment times. If demand seems low, the sales and marketing team might develop promotions or push for a product launch.

CONTACT US to know more about our demand and supply analysis solutions.

market intelligence

What Are the Demand Management Best Practices That You Must Follow?

Demand management is one of the critical business processes for boosting revenues. Today, a large number of companies are focusing on developing the tools for this management. Two very important factors, namely customer retention, and company financial performance, largely depend on its management. As a result, the need to adhere to demand management best practices for improving the overall performance of the business for the end-to-end supply chain has increased. It also provides a solution for all the functions that are affected by the demand management process. But before digging deeper and explaining how to improve your demand management processes, let’s understand the concept of demand management.Ask An Analyst_IR

What is demand management?

Demand management is not a statistical forecast, but it is a process that supports the objectives of an organization. It adheres to the tenets of best practices. It involves the review of demand projections using a method called “management by exception”. It is the development, reporting, and finally publishing of appropriate metrics of error that reflect the perfect business environment.

What are the core components of demand management?

A good demand management system must include the following components:

  • The engine of the statistical forecast that consists of both quantitative and rule-based methods
  • Management interaction that includes qualitative methods and management by exception
  • The system of performance management that includes feedback, publication, and accountability
  • Information organization that has visibility into data and analysis capabilities through graphs

Demand management best practices

Effective management of demand is essential for the profitability of a company. It is a business process that enables all organizations to respond to emerging situations in an effective Request Proposaland efficient manner by maintaining the right balance between supply and demand. This can be achieved by following some of the best practices, which include:

Identifying and focusing on the objectives of management

This practice includes the following:

  • Inventory reduction
  • Maintenance of customer service levels
  • Monitoring inventory of unavailable or discontinued items
  • Proper pipeline fill of new arrivals
  • This management process should be consistent across the enterprise
  • Assigning ownership of the process
  • Identifying and including organizations in the process that are impacted by the plan of demand
  • Implementing a consensus and collaborative procedure
  • Defining accurate points of aggregation to support objectives of the organization
  • Identifying the frequency and timing of the forecast review cycle

Get More Info

The practice of defining forecast management by exception

  • Identify appropriate measurements of error forecasting
  • Implement a procedure to disseminate the result of forecast
  • Review the complete demand management process procedures regularly for improving accuracy, performance, and efficiency

Determine and implement tools to support the process of management

  • Statistical forecast methods must be followed including rule-based methods
  • Error metrics must be examined regularly
  • Reporting methods should be followed for accurate results.

To know more about the best practices

cta ir