Mark Munson from ACE Micro moderates this discussion and is joined by Warren and Don, both experts from Netstock. The conversation covers key aspects of demand planning and forecasting in distribution, particularly how businesses can manage uncertainty and mitigate risks.
Key Points:
- Demand Planning and Forecasting: Defined as a collaborative process of predicting future demand to manage inventory and supply chains efficiently. It requires consistent planning and automation to minimize risks, such as overstocking or stockouts.
- Challenges: Companies often rely on manual tools like Excel, which can be time-consuming and inefficient. Automating demand planning allows businesses to respond quicker and review their processes, leading to better accuracy and reduced costs.
- Collaboration and Technology: Effective demand planning requires collaboration across departments (finance, sales, operations) and with external partners. Using advanced tools like Netstock’s platform helps improve forecast accuracy, optimize inventory levels, and drive profitability.
- Market Conditions and Redundancy: Recent market challenges, including the pandemic and global supply chain disruptions, have highlighted the need for redundancy in supply chains. Businesses must adapt by considering local production and maintaining flexibility.
- Promotion Strategies: Companies often misuse promotions, using them reactively rather than strategically. A proactive approach to promotions can help move excess inventory without eroding margins.
- Conclusion: Distributors play a critical role in balancing supply and demand, often acting as a buffer in the supply chain. To succeed, they must think strategically, leverage data, and continuously innovate their demand planning processes.
President and VP of Business Development
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