Demand planning is a great way to manage the demand and supply system in a better way. It covers any method that is used to predict demand and sales. http://adexa.com/home/
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How demand planning influence business?
1. How Demand Planning
Influence Business?
How Demand Planning
Influence Business?
Demand planning can save your company
money and increase your profits
2. Introduction
Demand planning can save your company money and
increase your profits. If you are running a business then
with proper demand planning, you can meet the
customer demands and also increase your business
revenue. Here are some of the benefits of appropriate
demand planning for the business.
3. Demand Planning
Benefits
Schedule your production, warehousing and shipping
plan scheduled maintenance shutdowns away from busy
sales periods
Have adequate materials and labor on hand throughout the
year
keep your production lines running
Better manage your warehouse and shipping needs
Make predictions about sales and allocate resources
accordingly.
4. Strategy
By planning demand for future periods, a company can alter
its business and marketing strategy to satisfy expected
demand by its customer base.
The company can also use this information to adjust its
pricing strategy, focusing on higher margin items or products
that are in high demand.
By the following demand closely and making forecasts, the
business gains an advantage over competitors who fail to
identify a shift or change in demand
5. Controlling Costs
Demand planning also allows a company to control its
production costs.
Demand planning allows a company to budget accordingly,
making it more efficient than it would be in operating on a
response basis only.
A business can justify a reduction in spending for advertising
and promotion if its demand forecast calls for it.
6. Tracking Overall
Performance
Demand planning gives the company a basis to compare
actual demand with management's expectations. In this way,
demand planning acts as a check and balance.
The company can identify how far its demand forecast is off
from actual demand, and adjust its business model
accordingly.
A company's financial statements provide a scorecard for
the company's performance, and demand planning allows a
company to produce pro forma financial statements for
planning and tracking overall performance.
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Business