Making the case: The ROI of Demand Management
This whitepaper discusses the value of quantifying the financial benefits of improving the demand planning process and how to evaluate how demand plans impact business performance.
Download "Making the case: The ROI of Demand Management" to explore a range of topics from linking demand planning to decision making to calculating the value of improvements. Contact us to assess your demand planning goals and technologies and strategies to address them.
Importance of Demand Planning
A reliable demand planning process is essential because it directly impacts various business functions such as procurement, manufacturing, and customer service. When demand plans are credible, they enhance decision-making, reduce excess inventory, and improve overall business performance. Companies that prioritize accurate demand planning can avoid leaving money on the table and better align their operations with market needs.
Quantifying ROI of Demand Management
To quantify the ROI from demand planning improvements, businesses should evaluate how these plans affect performance metrics like inventory levels, customer service, and financial commitments. This involves gathering data, documenting impacts, and calculating potential benefits. For instance, reducing excess inventory can lead to significant savings, while improved customer service can drive incremental sales. Utilizing templates to document these impacts can help create a compelling business case.
Challenges in Demand Planning
Organizations often struggle with the misconception that improving forecast accuracy alone is sufficient for effective demand planning. This shortsighted focus can lead to missed opportunities for improvement across other business functions. Additionally, many companies face issues with trust in their demand plans, leading to decision-making that overrides these forecasts. Addressing these challenges requires a holistic approach that links demand planning to broader business strategies and decision-making processes.
Sign in with LinkedIn