The major challenge in designing an effective Demand Management process is incorporating promotional lift and volume information into the demand forecast. The first challenge is to establish the correct information channel between field sales and the forecasting group so every change to the promotional plan is captured immediately. In most cases, this can be thought of as a 50% win in forecasting process design.

The next step in this process is to have the right statistical models in place to leverage the promotional information into usable forecasts.  Promotions can be captured as interventions.  Such interventions can be modeled either using Exponential Smoothing techniques or Box Jenkins models.  Although statistical modeling is important, the real challenge is to create information pathways between people who have the promotional information and the people who need it in their planning process. 

What are the common challenges in the promotional planning process for a typical manufacturer?  Learn more...

Most CPG supply chains have an active Sales and Operations Planning Process, which is cross-functional with participation from Sales, Marketing, Logistics, Supply Planning, Finance, Sales Planning and Demand Planning functions. Typically, there is a one-number philosophy although the more practical processes advocate tolerances between forecasts with different objectives.

S&OP is the manifestation of the internal corporate equilibrium between demand and supply. A series of meetings are held between different levels of management to discuss the unconstrained demand plan, the inventory and operations plan that would enable meeting the demand plan and the customer requirements and to understand the opportunities and strengths in the plan.  DemandPlanning.Net uses a proven methodology to implement S&OP with the right enabling tool.   more.....

 Response Management the next wave of supply chain innovation?

That's the question posed by AMR Research's Steve Hochman in a recent article.  Amongst demand-driven leaders, the pursuit of perfectly optimized forecasts and supply plans can no longer be the end game.

Click here to access the free article, read it and then tell us what you think!

Demand Planning.Net has launched a new discussion forum! 

The Discussion Forum is a resource for sharing ideas and questions in Demand Planning, Forecast Metrics, Sales and Operations Planning, Supply Chain Score-carding, CPFR, Account Based Forecasting and inventory optimization topics.  This board is moderated and questions answered by experts in the area, including Senior consultants at Demand Planning LLC.   Please visit the forum and post your questions and thoughts and share your real-world experiences.

The Future of Pharma: Forecast your path of excellence!

The Pharma Forecasting Conference addresses the issues and complexities of pharmaceutical industry Forecasting head-on, and delivers a variety of best practices solutions.

The Eyeforpharma Forecasting Summit to be held at the Back Bay Hilton on October 25-26, 2007 brings together a carefully selected group of pharma specialists and other experienced professionals, eager to share their knowledge, spell out their differing views and tell you what they know about forecasting’s hottest topics.

The Summit will sharpen your competitive edge and refocus your energy on the issues that matter most to you:

• Discover how to improve your profit margins quickly and effectively – despite increasingly restrictive market conditions 
• Leave with a comprehensive Action Plan that is designed to harness and utilize the full potential of your business
• Network with 700 top industry professionals

www.eyeforpharma.com/forecastingusa07