Demand management as a pursuit, a skill, a function and a set of technologies has grown considerably in importance due to new ways to reach customers and new ways to analyze data about them. Intense competition for product companies and retailers and the squeeze on margins challenge companies to get a lot better at planning.
Analyst Insight: CFOs today have a keen sense of the cost of volatility and uncertainty in terms of the link between cash/margins and the supply chain, yet they are largely in the dark when it comes to the quantitative techniques available to improve forecast accuracy, which tends to deteriorate as volatility increases. Major changes are being made in forecasting methods to address this volatility.
- Sree Hameed, Vice President, ChainLink Research
Discrete manufacturing companies operating with highly complex supply chains in today's volatile business world need collaborative planning and the ability to quickly respond to variances in those plans. They often want to model 'what-if' scenarios to better prepare them for those inevitable hiccups - or new business.
Kinaxis designed its RapidResponse solution to help companies with demand and supply balancing, optimized forecasting, and improved supply chain performance. Recently it debuted an enhanced version called RapidResponse Control Tower.
With sales of roughly half a billion dollars, Dorman Products is one of the world's leading manufacturers of automotive parts for the aftermarket, selling more than 100,000 distinct products. The company has experienced sharp growth over the past four years, says director of corporate forecasting Donald H. Mitchell. Recently, it saw the need to transform its demand-planning process, in order to create "a more transparent environment."