"A strategic approach to profitability explained by Infor's Andrew Kinder, director, product marketing SCM
A decade ago, thanks to the increase in computing power, companies began to improve the efficiency of their supply chain by identifying trends in data. The concept of Demand Planning and Forecasting enabled retailers, distributors, and manufacturers to accurately forecast the demand for a particular product during a given time period. Retailers could tell manufacturers (and often the other way around) who could then tell suppliers how much of a product was required to meet anticipated demand. This improved service levels, while reducing unused inventory and ensured stock was kept to a minimum.
This was fine ten years ago, when margins were healthier and the pressure of competition from half way around the globe was not as intense. Times have changed and competition is heating up. Pricing pressures are now eroding margins and companies are looking for efficiencies throughout their organisations...................................................Read the complete article "http://www.itshowcase.co.uk/News/2008-12-22/Next-generation-demand-planning"
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