President of DemandPlanning.Net, on how to forecast with real market
information in mind
Pharma forecasters traditionally get a
free pass when it comes to demand planning.
The cost of manufacturing in the
pharma industry is generally so low, it’s easier for companies to
warehouse excess inventory than to focus on forecasting the current
With the FDA cracking down on expired
drugs, however, and companies still reeling from underestimating the
severity of the recession in 2007 and 2008 and the swiftness of
recovery in 2009 and 2010, demand planning has grown in importance.
“The pharmaceutical industry is taking
stock of the past few years and realizing that demand planning is
now critical to move forward,” says Mark Chockalingam, President of DemandPlanning.Net,
a consulting boutique based in Boston, Massachusetts.
DemandPlanning.Net helps companies
understand and implement the organizational change necessary to
integrate demand planning into traditional forecasting capacities.