As a business owner or manager, you know that your performance is only as good as the data you have, to help you make informed decisions. Keeping tabs on supply chain operations and other key indicators of success can help you maintain a strategic edge, drive sales, and plan for the future. Board (one of our main partners) demand planning tools help businesses track orders and inventory more efficiently. This kind of technology has become essential for businesses seeking to streamline operations and cut costs. Read on to learn more about demand planning, what it does, and why it’s so important.
What is Demand Planning Software?
Image Credit: Board
Demand planning software is a tool that helps you forecast demand, manage inventory, and create sales forecasts. It’s used in both supply chain management and sales & operations planning (S&OP). Demand planning software can help you improve supply chain performance by reducing the time it takes to forecast demand. It can also help you forecast demand more accurately, which will help you reduce the amount of inventory you hold. A forecast error rate of less than 10% is ideal for most businesses. If you’re currently struggling to forecast demand accurately and/or find that forecasts take too long to complete, demand planning software can help.
Why Is Demand Planning Important?
Organizations globally are struggling with the immense amount of data they generate which affects their ability to chart their company’s plans to realize success. Overwhelming data might make it difficult to forecast demand accurately. If you don’t accurately forecast demand, you’ll end up either running low on inventory or overstocking. Neither is good. When demand is down, you could have a lot of unsold inventory on hand that’s costing you money. When demand is high, you risk running out of inventory and losing sales. When demand is low and you have too much inventory, you’ll put extra strain on your cash flow. When demand is high and you don’t have enough inventory, you’ll risk losing sales. Businesses with limited resources often struggle with forecasting demand. However, one thing is certain: demand planning is important for small businesses.
4 Key Benefits of Board Demand Planning Software
- Forecasting demand – Forecasting demand is the primary benefit of demand planning software. By forecasting demand, you can more accurately plan inventory levels and create sales forecasts. This will enable you to take more accurate sales orders and expedite shipping.
- Inventory management – Along with forecasting demand, Board can help you manage inventory. It can track inventory levels to help you determine when to reorder. It can also help you track inventory to make sure it gets to customers on time.
- BAII calculation – A business asset inventory (BAII) is a critical part of demand planning. This calculation helps you determine the value of inventory you have on hand. Board demand planning tools can help you determine the BAII of your inventory items.
- Reporting – Board demand planning can help you create customized reports that provide key insights into demand and inventory. The reports can show you things like sales forecasts, inventory levels, and demand gaps.
Board Demand Planning Software Ensures These 3 Things
- Accuracy – Board demand planning software provides accurate Results. If results are not, they won’t help you forecast demand more accurately or improve your supply chain.
- User interface – Board’s user interface is also important. You’ll be using the software on a daily basis, so intuitive navigation is paramount. If an interface is difficult to use, you may not use it as often as you should.
- Integration – Board demand planning software easily integrates with other inventory management software. This will help you avoid double data entry and ensure that data is up to date across all systems.
“It is with these priorities in mind, that Board will now be known for providing comprehensive solutions delivered via our Intelligent Planning Platform, which offers smarter planning, actionable insights and better outcomes.” -Board
Conclusion
Demand planning is important because it helps forecast demand and plan inventory levels more accurately. You’ll also be able to create more accurate sales forecasts with demand planning. By choosing Board demand planning software, you can forecast demand, manage inventory, and create sales forecasts. Demand planning also involves forecasting capacity and supply chain operations, so Boards integration abilities are critical. Board demand planning software takes into account all aspects of planning for future customer demand. After all, Board’s tagline is “Plan Smarter. Drive Outcomes. Lead Transformation.”
*** Here at G7 Tech, we are here to help. Schedule a demo with us today!