Demand planning is a crucial process which allows businesses to predict the demands for products or service and manage their operations and supply chain accordingly.
Organisations are facing increasingly complex challenges where operational risk is multiplying. Building a supply chain that is resilient to risk is critical for limiting disruption and loss of operating revenues.
Three key strategic elements underpin supply chain resilience and mitigation of risk:
● Robust supply chain assessment, where weakness and opportunities are identified based on risks, performance and capability
● Agility in the supply chain, where a flexible, fully digitised supply chain model is developed to meet market demands and respond to shocks
● Future-proofing the supply chain, where a focus is placed on evolving customer demand, sustainability and environmental concerns to enhance long-term competitiveness
At Vendigital, we have the expertise to uncover supply chain vulnerabilities and support companies in strengthening the flexibility and resilience of their operations, whether their supply chains are global or or leverage shorter, localised resources. With in-depth operational experience in supply chain management, coupled with our propriety digital platform, we support companies to strengthen supply chain resilience, future-proofing their activity, achieving competitive advantage, and maximising profitability as a result.
When supporting our clients with building resilient supply chains, we take an organisation-wide approach that aligns the supply chain with the activity and targets of other relevant departments. Our process adopts dynamic demand planning and real-time inventory management while seeking to establish efficiency in the distribution network, and follows five core steps:
Segmenting customers for a differentiated customer experience
Utilising our digital platform and data analysis expertise we consolidate, cleanse and generate insights from data to understand the cost-to-serve across different customer segments and their sales and profit potential. We then work with our clients to tailor their supply chains to offer a differentiated experience. These demand-driven supply chains enable increased sales, reduced operating costs and improved working capital.
Aligning the supply chain operating model with the business
Fully integrating the supply chain with functions, such as sales, production, procurement, product development and finance ensures maximum value can be achieved. By creating a ‘digital-twin’ supply chain control tower, we enable our clients to capture and use supply chain data for end-to-end visibility where supply decisions are aligned with strategic and customer objectives.
Improving visibility up and down the supply chain
End-to-end visibility relies upon capturing actual customer demand and orders, fluctuations and the movement of materials and products from suppliers to the customer in real-time. By gaining this understanding, our consultants can help companies predict future activity, moving toward prescriptive and cognitive analytics that facilitates informed supply chain decision-making.
Forecasting customer demand and conditioning the supply chain
By using demand data more effectively to create forecasts that ‘sense’ customer demand, we can help companies to manage their procurement and replenishment to condition their supply chains in real-time. This more responsive supply chain minimises the risk of product shortages while reducing the drawbacks of inventory holdings.
Building a demand-responsive supply chain
Businesses need to plan for unexpected events to reduce risk and improve cost-efficiency. This process starts by building strategic relationships and external capabilities with a broader range of suppliers and partners, where the company can also rapidly outsource production elements. Then by reconfiguring the supply chain operating model to be demand-responsive, the business can become more resilient to challenges and able to take advantage of new opportunities.
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The benefits of best practice
Leveraging our proprietary digital platform and wide-ranging operational and consulting experience, we help our clients identify supply chain risk and build resilience to protect the future of their business and its growth in many ways. For example:
Protecting business continuity
In minimising disruption and vulnerability with better supply chain resilience, we help protect our clients’ business continuity, strengthening their revenues and improving cost efficiency with reduced downtime.
Strengthening customer service
Increasing supply chain resilience allows for reconfigured supply chains that can better meet or exceed customer demands. With customer satisfaction improved, companies will experience a boost in revenue and profitability.
Growth and sustainability
By helping our clients to future-proof their supply chains for the long term, they will be better positioned to grow sustainably, with the agility to respond to external events and maximise on new opportunities.
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