9 steps to help beverage companies improve their demand forecasting process
TRANSCRIPT
9 Steps to help beverage companies improve their Demand Forecasting processDemand Planning
People
ProcessData
Technology
www.halobi.com
Demand forecasting can be a daunting task in the beverage industryUse these9 steps to help you develop an action plan to conquer the demand planning challenge.
1. Start atThe EndBefore starting, ask:
What do I want my demand forecasting process to include?
This impacts your resource capacity, team assignments and choice of software. Consider your objectives to ensure your process and people are right for the purpose.
Learn more:Develop a roadmap
DemandPlanning
Marketing
Sales
Review Prior Period
SupplyPlanning
Shipment Lift QTY
Add Market Intelligence
Validate Total Forecast
Demand Consensus
Forecast Release to
Supply Planning
Validate Baseline
Shipment Stat Forecast
Consumer Support
&Innovation
Demand Forecasting Process
Learn more: Tools that can help
Outliers, Exceptions,
Updates
2. ConsiderWhat YouNeedMost Suppliers and Distributors don’t know if they have a problem with their Demand Forecasting process.
How can you define a problem, if you don’t know there is a problem?
Beverage Companies Top Forecasting Challenges
8 Challenges 8 Solutions1. Multiple forecasts with departmental bias
(Finance, Sales, Marketing, Demand, Supply)
2. Forecast accuracy
3. Supplier/brand/SKU proliferation
4. Lead times
5. Code dates
6. New product forecasting
7. Manual processes / Excel
8. Laborious reporting
1. Consensus forecasts
2. Single data source, using more data toforecast, segmentation
3. SKU rationalization / segmentation
4. Lag accuracy
5. Process management model
6. New product forecast models withcannibalization accounted for
7. Standardized dashboards
8. Database automation tools
3. MeasureData QualityEvery year, data volumes grow exponentially so as technology.
With so much changing data, you need to plan for measuring and updating quality of your information on an ongoing basis.
Learn more: Data Quality
4. BenchmarkYour Progress
• Examine whereyou are now
• Establish whereyou would like tobe
• Assess yourperformanceagainst thosetargets
Learn more: Dashboards
Release Forecast
Gain Alignment
Add Market Intelligence
Generate Base Statistical Forecast
Update Demand Data
Review Prior Month
Scope of Demand Planning Process
Reporting
Analytics
Exception Management
Key
Tech
nolo
gy C
apab
iliti
es Hierarchy Management
Outlier Correction
Realignment
Profile Management
Statistical Modeling
CRM / TPM Integration
Event Management
Innovation Modeling
Version Management
Demand Consensus
S&OP
“What-If” Simulations
Forecast Release to Supply Plan
Benchmarking Your Process
Learn more: Tools that can help
5. SecureTeam Buy-inStakeholder support is key to demand planning success. It can no longer be a particular job title or siloed department function.
Think about drivers and pain points for the business, and show how you demand planning process changes will help improve things by making more money, reducing spend, saving time, or reducing errors.
6. Build anROI, GetInvestmentConnecting the demand planning process to the company’s objectives creates a good business plan. Key KPIs to consider are:
Revenue
Cost
working capital
margins
Waste
Sales orders
Learn more: Build your business case
7. PutEffectiveProcessesin Place Ensure you have
proper measuresand metrics and away tocommunicatethem
Ensure everyonein theorganization istrained
Hold regularmeetings toensure processesare effective andefficient
Find software and data that fits your needs today but can also scale with your business.
8. Get the Right Technology in Place
9. Measure Your Progress Lower inventory levels Less excess and obsolete product
Increased service levels Optimal use of working capital
For more information about effective Demand Forecasting, contact Halo.
www.halobi.com
+1 888.300.0219
@halo_BI