In today’s increasingly competitive and complex supply chain environment, every customer counts. When it comes to effective warehouse management practices in unpredictable market conditions, all customer demand cannot be treated equally.
Demand planning functionality within your cloud warehouse management system allows you to deal with the reality of your supply chain. It enables you to react to a shortage in supply and reserve inventory for your most important customers, protecting them from interruptions.
Demand Planning Defined
The function of demand planning is to use market signals, including channel sales, customer orders, and customer shipments, to predict future demand patterns through analytics. While the definition of demand planning varies by organization, the goal is universal: 100% on-time delivery of products. This functionality gives warehouse supervisors a clear window into which items need action to ensure on-time delivery, allowing them to stay ahead of unforeseen changes.
The power of demand planning is that it matches inventory to demand. Sounds simple, right? That is precisely the benefit in a supply chain environment that is anything but simple. This added intelligence allows the WMS to consider a range of external factors, including an item’s seasonality and rate of sales and signals the exact time to create purchase orders to meet anticipated demand. It helps you understand the impact of your decisions and manage the complexity of your supply chain.
Warehouse managers will find the benefits of a demand planning module in the following ways:
- Visibility Across the Enterprise in Real Time
Your WMS is equipped with the latest technology to anticipate your future inventory in real-time within a single module, empowering supply chain professionals across the organization. This real-time visibility means an increased ability to determine projected ship dates for fulfilling customer orders. Even more, it means everyone is on the same page. Increased demand visibility across the network allows all trading partners to share intelligence and become more aligned.
- Better Flexibility and Control to Streamline Tasks
For supply chain supervisors, quick analysis means more efficient planning. A demand planning module within a WMS provides full flexibility and control to help planners streamline and automate certain tasks. Also, it addresses localized seasonal demand variations throughout the selling season. This built-in functionality means that executing tasks is faster and easier, including setting time frames and preferred stock levels, because it is more adaptable to changing conditions.
- Improved Accuracy For Better Inventory Management
A WMS with demand planning functionality aligns your sales expectations with your inventory, improving the accuracy of your revenue forecast and as a result, improving your inventory management. Forecasts are not only more accurate and stabilized, but more informed and more efficient because demand is predicted and managed in a more efficient way.
- Maintained Customer Service for Your Best Customers
Effective demand planning allows warehouse supervisors to manage and analyze demand streams. Warehouse supervisors can quickly respond to shifts in demand and provide the expected level of service for your best customers.
In this fast-paced, competitive business, interruptions are costly. Demand planning functionality within your Warehouse Management System protects your most prized sources of revenue by providing the highest level of customer service possible.
Discover the power of the irms|360 Cloud Warehouse Management Solution in this quick 30-minute tour.
irms|360 provides real-time visibility and control over your operations to drive efficiencies and reduce costs in your warehouse.
During this 30-minute demonstration, you’ll see key functionality, including:
- Order management: intelligently monitor, sort and allocate work for maximum productivity
- Order picking: streamline order picking and determine the optimal pick sequence
- Packing and shipping: automate and streamline your packing and shipping process