These are some of the Technological Advancement in Demand Planning. Since the realm of demand planning is evolving rapidly, driven by technological advancements and a shifting global landscape. Let’s delve into the exciting trends that will shape demand planning strategies in the coming year.
Pyplan partners with ENEL two years ago when the group began to unify margin management criteria between distributors to support decision-making and generate risk and opportunity analyses.
The initial goal was to implement a solution that met the needs of each distributor in a single system.
To develop the tool they required Pyplan integrated different processes in order to achieve a specific goal: creating a collaborative system where employees can create margin simulations and centralize information from the distributors to speed up the flow of information.
A collaborative solution was developed to efficiently support various stages of the process. The selected tool facilitated the uploading and consolidation of information from customer orders to Puma, as well as the creation, negotiation and uploading of purchase orders from Puma Mexico to the corporation.
In addition, solid support was implemented for tracking and updating logistics, including dates of arrival of purchase orders at the corporate office. This integrated approach aimed not only to streamline operational processes, but also to improve coordination and efficiency in Puma Mexico’s supply chain.
Pirelli was using a combination of different tools and spreadsheets that made the financial planning process complicated, with many manual tasks and projection models that could not be extended to match the complexity of the business.
The company was looking for a tool to optimize the Financial Planning and Analysis process. Their need was to automate import and update data processes, improve the projection models and facilitate the display of reports at different hierarchical levels, including the head office in Milan (Italy).
Until now, no tool had the flexibility and speed that Nestlé required to plan the Demand and Production processes in an integral way and within the same environment.
Production planning is essential for optimizing the overall process, considering the products, resources and processes involved, as well as the expected demand for each product line.
Nestlé sought to find a tool that automates and optimizes the Demand and Production Planning processes, in a way that would allow users to have full visibility of both the hierarchy of its large product portfolio (by segment, family, brand, SKU, among others) and the logistics point, factories and production lines.
The application of advanced analytics and artificial intelligence in demand planning offers significant opportunities for organizations to improve forecast accuracy, analyze large volumes of data, and incorporate diverse data sources to drive informed decision-making. By leveraging these technologies, businesses can enhance operational efficiency, optimize inventory management, and meet customer demand effectively in today’s dynamic and competitive marketplace.
Transforming the budgeting process into strategic planning requires organizations to embrace agility, scenario planning, and collaboration. By adopting agile budgeting practices, scenario planning, forecasting models built on business drivers, automation of reporting, and fast feedback loops, organizations can improve decision-making, drive performance, and achieve long-term success in today’s dynamic business environment.
The resurgence of Planning by Objectives in FP&A reflects a growing recognition of the importance of structured planning and goal alignment in driving financial performance and meeting KPIs. By leveraging PBO methodologies, organizations can effectively assess the impact of strategic decisions on financial metrics, such as CAPEX, financing sources, debt, equity, and dividend policies. Moreover, PBO provides a framework for setting and monitoring KPIs, fostering accountability, transparency, and continuous improvement in financial planning and performance management processes.
Integrating ESG considerations into demand planning and supply chain management is essential for organizations seeking to build sustainable, resilient, and socially responsible businesses. By incorporating sustainability criteria into decision-making processes, organizations can reduce their environmental footprint, enhance brand reputation, and mitigate supply chain risks associated with climate change and social disruptions. Sustainable demand planning practices not only benefit the environment and society but also contribute to long-term business success and competitiveness in today’s global marketplace.
In this blog we summarize some of the best practices for demand planning in pharmaceuticals, highlighting the importance of data-driven forecasting, collaboration with stakeholders, inventory optimization, and flexibility in response to market dynamics.
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