Wednesday, April 27, 2016

Demand Planning

“Hey John, what do we need to order this month?”

Does this sound familiar?  John says, “I don’t know, let me go back and count the orders we had last month, let me see where that would be…?”   The question is how long will it take John to come up with a projection for this month’s Purchases or Work Orders?  Maybe a day or two, this is a mystery to most companies.

Medium size businesses have always had difficulties in planning for customer demand; they usually have to rely on multiple spreadsheets, which can cause all kinds of issues in keeping data updated, and constantly having to re checking the accuracy of the formulas.   Also, most companies do not have the resources or knowledge to analyze, develop formulas, and create data streams that is best for their business and industry.  NetSuite Demand Planning module helps businesses plan and forecast for product demand.
Source – screen sample:  NetSuite Demand Planning data sheet.

NetSuite’s Demand Planning Module helps solve these challenges by leveraging the integrated functions of NetSuite ERP.   You can use forecasts based off opportunities that is tracked within CRM and you can make demand projections based on historical data and trends from Inventory.These projections methods include: Linear Regression, Moving Average, Seasonal Average, and Sales Forecast.  This forward looking capacity gives you the ability to select your time frame and incorporate the fluctuations in inventory that your company experiences.   Also, theses quantity requirements are driven from customer demand, which individual components can be driven from your items within bill of materials that make up your product.  These demands of product create a supply plan that leverages your preferred suppliers on the appropriate date to have inventoried items or components delivered.   

Source – screen sample:  NetSuite Demand Planning data sheet.

If your company is in distribution or manufacturing, and you are constantly struggling with ways to streamline your projected inventory or work orders, you should investigate NetSuite Demand Planning Module (added subscription).   

Imagine a tool that gives you projections based on your past inventory consumption, sales forecasts (from opportunities), and tracks the ever growing demand for your products.  Imagine a tool to simplify purchasing or manufacturing to stock requirements and create plans you can use based off your purchase/sales data with only a few clicks.   I know John in purchasing would like it.

Resources to learn about NetSuite Demand Planning:

Contact TrueCloud - Demand Planning Demo  to schedule a webcast or live demonstration.

1 comment :

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