Tag: market demand

demand and supply analysis

Infiniti’s Demand and Supply Analysis Helped a Food Company Realize Savings of Over $4.8 Million

Demand and Supply Analysis for the Food Industry

The food industry in the United States is progressing at an incredible rate. However, the rapid pace of transformation has not only brought with it a new set of challenges but has also put immense pressure on food manufacturing companies to embrace new business strategies and keep tabs on the evolving market demands. In today’s competitive marketplace, companies in the food industry are also being pressurized to accurately predict, plan, and meet the evolving market demand. As a result, food companies are partnering with firms like Infiniti Research to leverage their expertise in offering demand and supply analysis solution.

By leveraging Infiniti’s demand and supply analysis solution, businesses can tackle inventory management challenges and achieve a substantial reduction in operational cost. Request a FREE proposal today!

Business Challenge

The client is a food manufacturer and supplier based out of the Northwestern United States. The client’s unstructured approach to supply chain management and inventory planning resulted in huge loses for the company. Also, the company’s inability to match demand with supply impacted the company’s entire business operations. This further increased production cost for the company as they had to deal with unscheduled changeovers to meet unplanned demands. Moreover, the condition of frequent stockouts resulted in increased cost due to expedited orders. This subsequently increased the churn rate. As such, the client approached Infiniti Research for a solution.

With Infiniti’s demand and supply analysis, the client wanted to:

Reduce supply risks – The client’s inability to manage the supply and demand even affected their supplier’s business operations. At times when the demand for food products decreased, the client’s suppliers encountered financial failures. As a result, the company started losing suppliers and this subsequently impacted their production processes. Therefore, by leveraging Infiniti’s demand and supply analysis solution, they wanted to forecast the potential demand for food products in advance and reduce supply risks.

Reduce product shortage and surplus – By leveraging Infiniti’s demand and supply analysis solution, the client wanted to efficiently manage the product order and avoid surplus.

Reduce supply chain cost – With Infiniti’s demand and supply analysis, the client wanted to reduce supply chain cost by better collaborating with suppliers and customers.

Reduce wastage – The client wanted to reduce product wastages with better perishable goods management.

Increasing competition and rapid transformations are making supply and demand management challenging for companies in the food industry. Are you facing difficulties in identifying the target stock levels to meet the rising market demand? If yes, our demand and supply analysis can help. CONTACT US today!

Solutions Offered

To help the client tackle the supply chain challenges, the experts at Infiniti Research followed a four-phased approach to demand and supply analysis.

  • In the initial phase, the experts at Infiniti Research analyzed the past sales data of the client and the major food manufacturing companies in the United States. This phase of the demand and supply analysis engagement helped the client to understand the past demand patterns for products and also helped them to identify the demand fluctuations.
  • The next phase of the demand and supply analysis engagement involved collaborating with major food manufacturers and suppliers to identify peak periods of demand. The experts also analyzed the client’s target customers to understand their needs and requirements.
  • In the third phase of demand and supply analysis engagement, the experts at Infiniti Research gathered US market insights. The factors such as population, millennial customers, and buying patterns of customers were taken into consideration.
  • The last phase of the demand and supply analysis engagement involved analyzing how the client’s competitors managed the supply chain requirements and adapted to the rapidly changing market demands.

The insights obtained from Infiniti’s demand and supply analysis solution helped the client to forecast the potential market demand for food products in the United States. Also, the client was able to understand the products with the highest demand in the market. Moreover, by thoroughly analyzing the sales report for the past five years, the client was able to understand demand patterns. This helped them to better manage their inventory activities and easily adapt to unexpected market changes.

supply demandWith Infiniti’s demand and supply analysis, the client was also able to efficiently deal with their suppliers and customers. This helped the company in improving supply chain visibility and further helped them in easily managing the workforce. Furthermore, by efficiently balancing supply and demand, the client enhanced profits by 23% and realized a savings of over $4.8 million.

Our demand and supply analysis solutions can help your company to efficiently optimize supply chain activities and reduce millions of savings in operational cost. Request for more information to know other benefits of leveraging our demand and supply analysis solution.

Importance of Demand and Supply Analysis for Food Companies
demand and supply analysis

What is supply and demand analysis?

Demand and supply analysis helps businesses to accurately analyze the potential demand for a product or service. To be successful in today’s competitive marketplace, businesses need to accurately fulfill customers’ demands and adapt to market changes. Demand and supply analysis process can help businesses to do so. By leveraging demand and supply analysis, businesses can identify target stock levels to meet the rising market demand.

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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.

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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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