The 5 Top Demand Planning Tips in a Covid-19 World
/As the world progresses into the next phase of the COVID-19 pandemic and businesses begin to re-open, the importance of accurate demand planning and forecasting is more important than ever before. It is a time of great disruption, variability and change, but by following these top 5 demand planning tips, your food and beverage company will be in a strong position to weather the storm.
1. Artificial Intelligence
Don’t be put off by the idea of Artificial Intelligence (AI). In fact, a recent survey by the Institute of Business Forecasting (IBF) identified AI as the technology that will have the largest impact on demand planning over the next seven years. Artificial intelligence software (demand planning software) is simply defined as software that is capable of intelligent behavior. It works for its users by providing the most accurate way to forecast demand. Demand planning software takes in all the important variables that can never be added to a spreadsheet; namely seasonal trends, annual trends and the impact of COVID-19 to demand and supply. This data-crunching software is used for calculation, data processing, and automated reasoning to provide food and beverage businesses with an analysis of multiple complex relationships and factors that change product demand.
2. Adapting
Because of COVID-19, food and beverage manufacturers must exhibit a willingness to adapt and change. Consumer purchasing patterns have changed and they’re purchasing through different channels now. Previous forecasting models are often no longer accurate and need to be rebuilt and restrengthened. But most importantly, you must abandon old assumptions and only rely on data and the new norms which have arisen.
3. Preparing for Future Pandemic
It would be unwise to not take the lessons learned from COVID-19 and prepare for a future, new pandemic which may result in a similar, dramatic demand changes. The most prudent approach is to use COVID-19 as an invaluable learning opportunity. Invest in leading demand planning software that helps you collect and harness the data at your fingertips. You should focus and predict changes to external variables and let the advanced software’s predictive analytics form a sold demand planning strategy for you if another pandemic were to arise.
4. Communicate
Data and AI are a critical component of forecasting, but they're not everything. You need to keep communicating with everyone in your food and beverage business to get full and accurate demand planning information. A culture of internal communication is important. Regular cross-team meetings, daily emails and other forms of information sharing are the means by which a culture of collaboration and communication can be achieved, and all aspects of the food and beverage enterprise can run smoothly.
5. Collaboration With Your Suppliers
In a COVID-19 world strong collaboration with your key suppliers should definitely be at the top of your demand planning agenda. Information exchange is vital and in an ideal world you and your suppliers will engage in open communication and regularly share ordering plans and other relevant information which impacts the demand planning process.
If your food and beverage company is looking to scale and grow via ERP solutions, traceability and demand planing software, get in touch with Cashmere today.
