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Helping you to improve your demand planning processes
At Hatmill, our expert demand planning consultants will optimise your supply chain by improving forecast accuracy and inventory management. We’ll analyse market trends and your historical data to predict future demand, reducing stockouts and excess inventory.
Our tailored strategies ensure your business meets customer needs efficiently and cost-effectively. We employ advanced analytics and industry best practices to refine your demand planning processes. Partner with us to achieve better alignment between supply and demand, enhance operational efficiency, and drive business growth.
Understanding demand drivers
We’ll work with you to review your historical data to identify trends and then work with stakeholders across your business to understand the factors driving past performance, i.e. new product launches, promotional campaigns or shortages in supply.
We can then work with you and your teams to:
- Improve forecast accuracy and eliminating bias
- Leverage your existing system parameters
- Define KPIs for demand planning
- Support in 3rd party system selection and implementation
- Stratify inventory tailored to your business objectives
- Implement an S&OP process
- Scenario plan to assess the feasibility of future initiatives or investment
- Create and deliver a statistical forecast
Process & considerations
The Hatmill approach to demand planning
Our expert consultants will work with you to understand your unique demand planning needs and provide recommendations based on your exact requirements. Here’s how we’ll do it:
Data collection
We’ll begin by gathering historical sales data, market trends, and relevant external data. This comprehensive data collection helps in creating a solid foundation for accurate demand forecasting.
Data analysis
We’ll analyse the collected data to identify patterns, seasonality, and trends and use statistical methods and demand planning software to process and interpret the data, uncovering insights that inform future demand predictions.
Forecasting
We’ll then develop demand forecasts based on the analysed data. We’ll utilise various forecasting models and techniques to predict future demand accurately. This step is crucial for aligning supply chain activities with market demands.
Collaboration
Different departments such as sales, marketing, finance, and operations will be engaged to ensure that the demand plan is comprehensive and aligned with your company’s overall strategy.
Planning & execution
We’ll create detailed demand plans that outline how to meet forecasted demand. This includes production schedules, inventory levels, and distribution plans.
Monitoring & adjustment
We’ll continuously monitor actual demand against forecasts and collect feedback and measure performance using KPIs. We’ll adjust the demand plan as necessary to respond to market changes and improve accuracy over time.
“Hatmill always took the time to engage with key stakeholders, understanding our business needs before designing their solutions. their ability to keep projects on track and the team focused enabled us to complete the project ahead of schedule.”
– Paul Roughley, Group Operations Director, CMS
Short-term demand planning
In the short term, a reliable demand plan should underpin your day-to-day activities, ensuring purchasing, resource allocation, and promotional activities are aligned to meet customer needs. Effective demand planning helps in avoiding stockouts and overstock situations, maintaining optimal inventory levels.
Long-term demand planning
Longer-term, your demand plan should offer insights into recruitment strategies, capital expenditures (CapEx), return on investment (ROI), and operational capacity constraints. These insights help anticipate future customer service capabilities and will ensure your business can scale effectively to meet growing demands.
FAQs
What should you know?
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Can demand planning help to reduce costs and increase efficiency?
Yes, demand planning can significantly reduce costs and increase efficiency. By accurately forecasting demand, your business can optimise inventory levels, avoiding excess stock and reducing carrying costs. It helps in aligning production schedules with actual demand, minimising waste and resource misallocation. Efficient demand planning enhances supply chain coordination, leading to smoother operations and fewer disruptions. This proactive approach ensures better resource utilisation, improved customer service, and overall operational efficiency, ultimately driving cost savings and business growth.
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How can demand planning improve your inventory management?
Demand planning improves inventory management by providing accurate demand forecasts, which help optimise stock levels. This reduces the risk of overstocking or stockouts, ensuring the right products are available when needed. By aligning inventory with actual demand, your business can minimise holding costs and avoid unnecessary storage expenses. Demand planning also enhances supply chain efficiency, allowing for better coordination between purchasing, production, and distribution. This leads to a more responsive inventory system, improved customer satisfaction, and overall operational efficiency, ultimately driving cost savings and better resource utilisation.
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How is demand planning integrated with other business processes like sales and operations?
To integrate demand planning with other business processes like sales and operations, we start by establishing cross-functional collaboration. This involves regular communication between sales, marketing, finance, and operations teams to ensure alignment on goals and forecasts. We use integrated software systems that share real-time data across departments, facilitating synchronised planning and execution. By incorporating sales insights and market trends into demand forecasts, we ensure that production and inventory levels meet actual demand. This holistic approach improves overall efficiency, reduces costs, and enhances responsiveness to market changes.
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