Demand management improving

We will eliminate all duplication of effort within our PSM and ESH systems by integrating the elements, programs, and management processes wherever possible. We will achieve this integration by using Quality Management principles to design new systems. We will measure our improvement in terms of fewer resources, quicker response to new demands and improved PSM and ESH performance. 

To succeed in the process of unlocking value with IT, three processes in particular need special attention IT demand management, project portfolio management, and improved value management. 

The implementation of a new demand management system helped a large U.S. direct store delivery company improve forecasting accuracy by 4 percent and increased service levels by 6 percent. Despite growing volumes, the company was able to hold inventory costs flat. The company also found that based on the new forecast, the sales department was better equipped to plan profitable sales promotions. The project s savings exceeded expectations. 

When we switched to our new demand management solution, we saw our forecast accuracy improve immediately. We also saw service levels take off in a positive way and our inventories decreased. We exceeded our original projections the accuracy is driven by a change from a 50,000-foot view of forecasts to a more detailed look. Now we can talk about a particular deal with a retailer and know what kind of lift is generated and then that drives the supply chain. There is no second-guessing, said a demand planner at a food and beverage company. 

Moving the forecast based on an enterprise view to a channel view. Learning to listen and use customer feedback cross-lunclionally. Implementing a program lo drive continuous improvement in demand management processes ... 

An important component of demand management is finding ways to reduce demand variability and improve operational flexibility. They argue that reducing demand variability aids in consistent planning and reduce costs, and that increasing flexibility helps the firm respond quickly to internal and external events. 

The discussion of the demand management function raises the issue of responsibilities assigned to what we will call the supply chain manager. This is certainly a nontrivial consideration because many companies have done just this. Erecting a management function with this title and real power over the supply chain will be seen as disruptive to other functions in a mature organization. Each company must assess whether or not it will improve links with the customer. 

HSEQ issues are a daily topic in shared workplace in the case company. It is not possible always to choose which employees enter the site, especially when subcontracting is used. The principal company has demanded to improve HSEQ practises in shared workplace and due to that different supplier s HSEQ management methods were developed and applied. However, practices were fragmented and formal standard procedure did not exist. 

GSl Switzerland, the leading association dedicated to the design and implementation of global standards and solutions to improve efficiency and visibility of supply chains and demand management. GSl Switzerland was the project s disseminating partner. 

The stand down is a company-wide accident recall session. The details of the event, normally a fatal accident, are recalled, analyzed, and a line is drawn in the sand with management demanding an improvement in safety cultures, habits, and performance from that point on. Regrettably, the stand downs are normally held after the event rather than before the event. 

With improvements to forecasting and a reliable level of accuracy as deliverables, the firm looks next at its demand management and capacity planning systems. For any such system to work effectively, the firm must meticulously collect the necessary data from everyone who can generate valuable information about demand — internal sales representatives, customer service personnel, channel partners, distributors, customers, and consumers. This data must then be refined frequently and updated to match actual consumption and replenishment needs. Any alterations to changing consumer preferences, customer needs, buying patterns, competitive moves, and market conditions need to be part of the input to a dynamic system of analysis, direction, and response. The process is continuous and requires maintenance to keep the demand plan as close to actual consumption and replenishment needs as possible. 

Newer methods of vendor-managed inventories (VMI) and jointly managed inventories 0MI) are offsprings of this effort. But in all cases, the focus is placed on meeting customer demand by improving the processes and methods used to plan production and manage inventories between... 

---