9 steps to help beverage companies improve their demand forecasting process

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

info@halobi.com

@halo_BI