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Additive Manufacturing and Demand Management

Staying Ahead of the Curve with Additive Manufacturing

Technology is developing at exponential rates, and every other industry is developing simultaneously. The latest development in the technological world is additive manufacturing at a large scale. More commonly known as 3-D printing, the young concept has grown to a mass production level rather quickly. However, 3-D printing and rapid prototyping, while used interchangeably with additive manufacturing, are subsets of the same. The role it plays in the manufacturing industry now is highly impactful and is bringing about change that is long overdue.

There is no limit to the positive impact of additive manufacturing. It is a sustainable, durable, more efficient, and the extent of manufacturing design it allows is incomparable. Additionally, it is reforming traditional supply chains across industries, allowing companies to reduce losses, save time, optimize products, and increase automation, also in-turn reducing risks substantially.

However, as the manufacturing industry grows, it is faced with challenges relating to changing demands, on-demand needs, wide range designing and execution, major investment, and maintenance. Experts suggest leveraging demand management solutions for efficient growth. Demand management helps additive manufacturers strategize according to customer demand and benefit from all the advantages it offers. In this article, Infiniti’s industry experts discuss additive manufacturing and the advantages, impact on businesses, and need for demand management.

Speak to our exerts to learn more about the role of demand management in the growing manufacturing industry and stay ahead of the curve.

The Advantages of Additive Manufacturing

As an industry grows, so do the technologies it employs. Additive manufacturing is a crucial indicator of the growth of the manufacturing industry. To help understand how it is beneficial, experts at Infiniti have highlighted the following four key advantages:

  • Design Freedom: Additive manufacturing uses materials that can be printed in the preferred design, removing the limitations of rigid and unyielding materials. This allow for a wider range of designs. Reducing the need to design and construct in limited capacities. Parts that previously required welding or brazing, can now be singularly designed and manufactured. This also allows to create designs that could previously not be attached due to various material issues.
  • Sustainability: Additive manufacturers can now use solely the materials required, bringing down waste by a substantial amount. Without the need to cut parts or supply from a larger material, such as rigid flex, there is no excess material that would most commonly need to be disposed of. This in-turn reduces energy consumption and lowers carbon footprints.
  • Faster Manufacturing Cycles: Since the process is initiated through efficient software, a large amount of time is saved in the transfer of information process. This allows for faster prototype production, and therefore, faster testing. Additionally, changes can be made immediately, reducing time and material wasted in the testing or optimizing process.
  • Accuracy and Efficiency: The high level of automation, design freedom, and control through software in additive manufacturing provides high levels of accuracy that would not be possible with an assembly line. Additionally, as previously mentioned, the changes required can be immediately made, and efficiency will remain uncompromised.

The Business Impact of Additive Manufacturing

While knowing the wide span of advantages of additive manufacturing is crucial, it is also important to understand how exactly they impact businesses. Additive manufacturing has had a highly positive impact on the manufacturing industry, and all other industries associated with it. The following five points explain the business impact as well:

On-Demand Supply:

Additive manufacturing allows for goods and products to be produced as and when required, as opposed to the mass manufacturing approach of the traditional method. This allows for customers to acquire products, spare parts, and goods as per their need, and businesses to only produce as per current or accurately forecasted demand. For businesses, this translates to reduced waste, higher demand, higher customer satisfaction, and reduced costs.

Faster Supply Chain:

Additive manufacturing majorly reduces the impact of various physical material issues. An additional impact reduced by this form of manufacturing is that of trade issues. The materials used are readily and locally available, reducing the risk of changing policies. Additionally, with the reduced need for assembling various parts, since products can be printed in various geometric shapes, there is need for a singular raw material.

Increased Automation:

Since a single unit can produce a complete part without the need for tooling, reducing dependence on fixtures and production time. Further, there is a reduced need for manual intervention during the manufacturing process, seeing as most of the process is automated. This requires a lower amount of labor, also requiring less-skilled operators.

Product Optimization:

The most prominent issue in mass production, is the inability to make immediate changes to the product or process. For instance, a flaw in a certain manufactured product, would require various major adjustments in the manufacturing process to change. Since additive manufacturing uses one raw material, and can be digitally controlled, change is easier, which in turn makes product optimization easier. Reducing the costs of procuring more raw material, the need to acquire more skilled labor, and the loss of large sums due to a flaw.

Understanding the advantages and business outcomes of additive manufacturing is crucial to propelling the growth of the manufacturing industry. Get more information to gain more in-depth insights from our experts.

The Role of Demand Management Solutions

While additive manufacturing has innumerable advantages, it also has certain challenges that make it difficult for industries and companies to easily grow with the fast propelling industry. While these units conserve time by reducing transport of raw materials, allowing automation, and allowing faster testing cycles, their limitation is that they print one layer at a time. Similarly, other challenges such as the lack of expertise in this field, the large initial investment and maintenance costs, and the lack of digital infrastructure required in many cases.

However, these are challenges that can be efficiently dealt with as the system begins to grow. More importantly, companies now faced with high demand, and issues with delivering accordingly. The future of additive manufacturing is highly dependent on its interaction with demand management solutions in the coming years of forecasted growth. Infiniti Research’s demand management experts are equipped to approach and tackle this exact challenge. By efficiently forecasting demand, preparing for market trends, and estimating consumers’ demands, the demand management process can significantly reduce risks and increase supply chain agility.

The demand management process is crucial to the efficient growth of additive manufacturing. Request a free proposal to learn how Infiniti’s demand management solutions experts help additive manufacturers grow strategically.

personal protective equipment market

Developing a Flexible Demand-Supply Synchronizing Strategy to Minimize Overall Cost to Serve for a Personal Protective Equipment Market Client | Demand Management Solution

Personal Protective Equipment Market Overview

The COVID-19 outbreak has increased the demand for PPE products, including masks, protective clothing, and gloves worldwide. Besides, growing awareness regarding workers’ health and safety and increasing demand for respiratory equipment in mining are expected to propel the growth of the personal protective equipment market. Despite this positive outlook, rising costs, supply chain complexities, PPE shortages, and lack of integration are expected to hamper the growth of the personal protective equipment market over the coming years. As such, PPE manufacturers will need to consider the future security of the supply base. This is where Infiniti steps in with its best-in-class demand management solution. Demand management solutions can help companies in the personal protective equipment market to forecast demand for supplies and respond to customer needs faster in a period of crisis.

Since the COVID-19 outbreak, demand for masks, gowns, gloves, and other protective gear has increased by a factor of 100. To meet this demand for supplies, PPE manufacturing companies will need to reimagine their supply chains with a redoubled focus on agility, resilience, social responsibility, and humancentric needs. Learn how our business continuity solution can help achieve this objective.

Business Challenges Faced

The client is a personal protective equipment manufacturer based out of the United States.

Unpredictability within the personal protective equipment market caused inventory shortages for the client. Also, the client faced challenges in aligning their production cycle with the patterns of patient demand and increasing the frequency of the manufacturing process accordingly. Besides, long-lead times made it difficult for the client to deliver products on time and on-demand. Additionally, the personal protective equipment market client faced challenges in managing the reverse logistics process of personal protective equipment. Also, the company’s lack of supply chain visibility and highly manual processes resulted in increased costs throughout the supply chain. The personal protective equipment market client, therefore, wanted to secure the supply base and respond to customer needs faster. They chose to partner with Infiniti Research to leverage their expertise in offering demand management solution.

By partnering with Infiniti Research, the personal protective equipment market client also wanted to:

  • Respond to extreme volatility in demand globally, regionally, and locally
  • Forecast demand for supplies in known and unknown crisis
  • Understand true risks to supply and the ripple effect on quality, timeliness, and service delivery
  • Enhance visibility into supply levels
  • Respond to customer needs faster in a period of crisis by redirecting product flows through smaller distribution channels

Personal protective equipment manufacturers are facing roadblocks when it comes to supply chain efficiency. Contact us to learn how our business continuity solutions can help PPE manufacturers to build a resilient supply chain for the future.

Our Integrated Approach:

  • The initial phase of the demand management solution included creating transparency on the multitier supply chain. This involved working closely with the company’s manufacturing team to identify supply chain complexities.
  • The next phase included optimizing production and distribution capacity. Also, the experts at Infiniti Research focused on conducting scenario planning to understand the impact of the changing product demand on the client’s operations.
  • The third phase included focusing on Tier 1 supplier risks. This was done by gaining visibility into Tier 1 supplier inventory, warehouse, and order fulfilment status.
  • As a part of the demand management solution, our experts also worked closely with the client to help them develop a holistic supply risk assessment model.

Business Outcome

With Infiniti’s demand management solution, the personal protective equipment market client was able to create transparency on multitier supply chains by establishing a list of critical components, determining the origin of supply, and identifying alternative sources. Also, the experts helped the client to estimate available inventory along the value chain and manage demand and supply requirements. The client was also able to understand the demand impact specific to their business and subsequently devise a flexible demand-supply synchronization strategy. Moreover, by evaluating alternative inbound logistics options, they were able to maintain productivity and maximize profitability.

With Infiniti’s demand management solution, the personal protective equipment market client was also able to:

  • Center the supply chain around customer needs
  • Shift towards multiple micro-segmented, fit-for-purpose supply chains
  • Proactively respond to changing PPE demands
  • Leverage cost-effective, automated warehousing solutions and enhance visibility into inventory, shorter lead times, and lower operational costs
  • Partner with an experienced third-party provider and manage the reverse supply chain

Within six months of leveraging our demand management solution, the personal protective equipment market client was able to manage demand-supply requirements and minimize overall cost to serve by 13%.

Want to know how our demand management solution can help your business? Request more info here.

demand management

Reducing Inventory Costs by 13% by Accurately Predicting Demand for a Canadian Retailer

Retail Demand Management Solution

As the world of retail distribution continues to transform, customers demand faster delivery of products. To meet the ever-evolving needs and demands of customers, retail companies will need to bring precision to every point of the supply chain. This is where the real power of leveraging demand management solution comes into play. Demand management can help retail brands to build a reliable forecast, improve product forecast accuracy, increase supply chain scheduling, optimize labor management, and create efficient cash flow management.

Effective demand management can assist supply chain managers in managing logistics activities and improving forecast accuracy. Request a FREE proposal today!

Business Challenge:

The client is a retail company based out of Canada.

Our client, a retail brand, faced significant losses due to overproduction. Besides, they faced difficulties in efficiently managing supply chain processes. In order to prevent supply chain disruption, they wanted to identify, forecast, and fulfill product demand based on the market needs. They chose to partner with Infiniti Research to leverage their expertise in offering demand management solution.

By leveraging demand management solution, they also wanted to:

Reduce supply chain costs: The client wanted to identify supply chain challenges and find out which processes cost the most and areas where revenue is being used inefficiently. By doing so, they wanted to restructure their supply chain structure and reduce supply chain costs.

Optimize inventory: By leveraging Infiniti’s demand management solution, the client wanted to review inventory levels in real-time and stock up the right number of products.

Minimize risks: By accurately forecasting the product demand in advance, the client wanted to better plan and make the right decisions about budgeting, sales, marketing, raw materials, and production. Besides, they wanted to minimize supply chain risks, improve distribution planning, improve supplier relations, and boost customer experience.

Are you facing similar challenges? If yes, our demand management solutions can help you to restructure your supply chain structure and reduce inventory costs. Contact us to leverage our demand management solution.

Our Approach

The experts at Infiniti Research followed a three-phased approach that involved:

Market research engagement to analyze industry transformations and developments in the Canadian retail market.

Inventory forecasting solution to forecast the target stock level to meet the potential market demand.

Demand planning engagement to predict demand patterns based on historical sales data, customer orders, and market indicators.

Results Obtained

By tracking real-time inventory data, the experts at Infiniti Research helped the client to improve visibility across the supply chain. Also, by leveraging demand management solution, the experts helped the client to optimize functions such as forecast-to-stock, order-to-cash, prepare effective production schedules, and optimize inventory levels to significantly lower operating costs.

Besides, by thoroughly analyzing the client’s core areas such as storage strategy, supplier relationships, and the speed of moving supplies, the experts helped them to identify processes that cost the most and areas where revenue is being used inefficiently. This helped the client to improve these core areas and produce significant cost savings. Also, the client was able to identify cost-effective solutions for transportation, gain access to better inventory management, and speed up transportation processes. The company was able to reduce inventory costs by 13%, and thereby enhance profits by 21%.

Want to know more benefits of leveraging our demand analysis solution? Request for more info and our experts will get in touch with you with comprehensive insights.

heavy electrical equipment

Infiniti’s Demand Forecasting Solution Helped an Industrial Equipment Manufacturer to Reduce Operational Cost by 27%

Demand Management Solution for an Industrial Equipment Manufacturer

Leading players in the industrial equipment manufacturing sector are facing predicaments such as lack of insight into the supply chain, resource management issues, and engineering challenges. Moreover, with rising market competition and increasing technological advancements in the industry, industrial equipment manufacturing companies are pressurized to invest in technology and fulfill customers’ demands by accurately managing inventory requirements. Consequently, industrial equipment manufacturers are partnering with firms like Infiniti Research to leverage their expertise in offering demand forecasting solution.

Are you facing challenges in accurately forecasting the inventory requirements for your organization? If yes, our demand forecasting solution can help. Request for a FREE proposal today!

Business Challenge

The client is a European industrial equipment manufacturer and supplier. The client’s unstructured approach to inventory management hugely impacted the company’s overall sales rate. This even increased churn rate by 27%. Subsequently, the company witnessed a huge dip in their profit margin and started losing market share to their competitors. The client, therefore, realized the need to leverage demand forecasting solution and approached the experts at Infiniti Research. With Infiniti’s demand forecasting solution, they wanted to reduce inventory errors, better plan supply chain requirements, and efficiently allocate resources.

Other challenges faced by the industrial equipment manufacturer were:

Industrial equipment manufacturer challenge #1

Inadequate inventory planning– The industrial equipment manufacturer was facing challenges in planning the inventory operations and efficiently supplying industrial machinery according to the market demand. The lack of insights into the supply chain was one of the reasons behind this. Therefore, the industrial equipment manufacturer wanted to leverage Infiniti’s demand forecasting solution to better plan their inventory operations.

Industrial equipment manufacturer challenge #2

Resource management – The constant change in the demand for industrial machinery made it challenging for the industrial equipment manufacturer to efficiently manage their workforce. This even impacted the company’s bottom line. The client, therefore, wanted to forecast the demand for products in advance and better manage the workforce.

Industrial equipment manufacturer challenge #3

Customer experience management – By leveraging Infiniti’s demand forecasting solution, the industrial equipment manufacturer wanted to reduce risk in supply chain operations and keep inventories optimized. By doing so, the industrial equipment manufacturer wanted to reduce the churn rate in the company and attract new customers.

Get in touch with an expert to know how we can help you solve key business challenges.

Solutions Offered

The experts at Infiniti Research followed a three-phased approach to demand forecasting. In the initial phase, the experts analyzed in detail in the equipment manufacturing industry in Europe and identified regulations and changes that impact the business operations. The next phase involved analyzing the sales rate of the top industrial manufacturers in Europe. This phase of the demand forecasting engagement helped the client to understand the peak periods for industrial machinery. In the last phase, the experts identified constraints that impede the production process of the company.

With the insights obtained from Infiniti’s demand forecasting solution, the client was able to streamline their supply chain structure to meet the evolving market demand. Also, by analyzing factors impeding the production process, the industrial equipment manufacturer was able to make informed business decisions and understand the spikes and dips in machinery demand. Furthermore, the industrial equipment supplier was able to increase revenue opportunities and reduce inefficiency.

Within a short period of eight months, the industrial equipment manufacturer was able to better plan the supply chain, efficiently allocate resources, and manage customers’ needs and requirements. In addition, the industrial equipment manufacturer was able to enhance the sales rate and reduce operational cost by 27%.

Infiniti’s demand forecasting solution has helped various global players to improve sales and operational planning. CONTACT US to know how our demand forecasting solution can help your organization.

Demand Planning and Forecasting

Demand Planning and Forecasting Analysis Helped an Equipment Manufacturer Curtail Loss of Market Share and Enhance Profit Margins by 31%.

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.

By integrating supply and demand planning, the risks of overstock and stockouts can be reduced. Our demand planning and forecasting analysis can help you to achieve this objective. Request a FREE proposal today.

Business Challenge

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.

Are you still depending on your company’s previous sales data to predict the future demand for products? If yes, it’s high time for you to leverage demand planning and forecasting solution to improve operational efficiency and reduce inventory cost. Contact us today!

Solutions Offered

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.

Results Obtained

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%.

Request for more information to know more about the benefits of leveraging our demand planning and forecasting solution.

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

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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.

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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.

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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.

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market segmentation

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.

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