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

August 24, 2018

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 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 process. But before digging deeper and explaining how to improve your processes, let’s understand the concept of demand management.

Request a free proposal for market-specific insights on demand management, forecasting, and demand-supply analysis.

Demand management best practices

Effective management of demand supply 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 and 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

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

The practice of defining forecast management by exception

  • Identify appropriate measurements of error forecasting
  • Implement a procedure to disseminate the result of the forecast
  • Review the complete process 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

Request more information on demand forecasting and management to learn more about its benefits.

We help our clients make smarter decisions to achieve rapid business growth

Our strength lies in the unrivaled diversity of our international market research teams, innovative research methodologies, and unique viewpoints that merge seamlessly to offer customized solutions for your every business requirement.

Sorry, we no longer support Internet Explorer. Please upgrade to latest version of Microsoft Edge, Google Chrome, or Firefox.