Saturday, 15 June 2019

The Purpose Of Customer Demand Planning

By Angela Moore


When it comes to forecasting the interest in soon to be released products, there are several aspects. In one case, customer demand planning or CPD enables sales and marketing teams to develop forecasts based on planning as related to revenue, inventory, production and service processes.

CDP is also an important and integral part of the marketing process when it comes to the management of value chains. For, it can often be easier for managers to plan the deployment of employees and other resources necessary to take the product from the planning phase to the marketplace. As such, by using CDP, managers can use such data in a number of different ways.

The approach with CDP is much different than the typical top down approach. For, while there are some risks such as accuracy with numbers and low forecast models, the overall risk with regards to economic loss is much lower. In either case, it is important to review the numbers on an ongoing basis prior to delivery in order to keep up with product supply and demand. Otherwise, there can often be delivery delays or product shortages during the initial release period.

For companies which prefer to use software to accomplish this type of planning, there are a number of companies now releasing different versions. In most cases, companies will find it best to review different packages to find the one which will work best with the specific product to be released. In addition, there are also market to consumer systems which cut out the need for middle men which can often save the company and distributor a great deal of money.

The complexities and challenges when it comes to discovering various markets are numerous though vastly different from those which suppliers such distributors and manufacturers face. As a result, the technology related to demand management for the merchant is also different compared to the manufacturer or brand on the supply side. In one case, demographics often play a major role with regards to interest in products in different areas of the world.

CPD is also aimed more at matching manufacturers with customer logic which includes customer experience, pricing optimization, creation inventory, transportation optimization, sourcing and technology. For, if a company can not plan the results of product delivery, it can often difficult to know whether or not the product has the potential to do well in the marketplace.

Like in other areas of business, new technologies are assisting in forecast and predictive analytics in this area. For, this type of planning is changing the way different companies perform and operate before becoming competitive in the industry. In addition, with the evolution of these solutions, companies are now discovering new methods for cutting cost and increasing efficiency.

CPD being of assistance to companies with regards to productivity is not an accident. For, to be successful, companies have to be able to plan and forecast when it comes to product availability and desire so that delivery will align with public demand upon the initial release. As such, by using CDP, many companies are now experiencing more success than ever before in history.




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