Forecasting Vs Demand Planning Companies use a variety of tools to predict where their business currently is and where it is headed. By “reading the tea leaves”, planners attempt to ensure correct stock levels, optimize inventory control and inventory value,…
With disruption such as COVID-19 rapidly shifting consumer tastes, market volatility, and human error, the threat of both overstock and stockouts is always present. On the one hand, companies strive to have enough stock available to manage their order position…
Many people look at forecast inventory accuracy in the same way people look at the weather. Maybe it’s right, maybe it’s wrong, but there will be more weather tomorrow and we can try again. But in business, that can cost…
Executive Summary: Manufacturers utilizing MRP to plan material requirements should ensure data integrity and accuracy including forecasting data, lead times, and inventory. They should also choose software that aligns with their needs, comprehend how it treats blanket orders and safety…
When people hear the word “planning”, many of them immediately make the connection with “inventory”. Granted, inventory strategy is a critical part of a company’s overall health. But planning today encompasses much more than just inventory. It covers the entire…
Before we talk about consumption-based planning, here’s a cautionary tale. On dark, curvy roads during bad weather, warning signs and lights are critical in helping prevent accidents. If the signs are too close to the curve, momentum and slow response…
Every company would love to have explosive growth that helps ensure the health and long life of the enterprise. And they would all like to master accurate growth forecasts. But the reality is that most businesses have stable and predictable…
Even before COVID-19 brought unprecedented disruption to supply chains, business leaders were expecting a recession. In 2019, Bloomberg estimated a 26% chance of a recession for 2020. Now that this is likely for the remaining balance of the year and…
During the best of times, managing cash flow can be challenging. But during long-term disruptions such as COVID-19, cash flow management can become an existential exercise. As companies look to assess the damage from the pandemic, in order to define…
Supply chain disruptions are nothing new. As 2020 continues to demonstrate, some disruptions can have a greater, catastrophic impact. But even small fluctuations can cause what is known as the “Bullwhip Effect”. This phenomenon occurs when demand signals are amplified…