A New Approach to Eff ective Demand Planning

A New Approach to Eff ective Demand Planning By Richard Loretto E X E C U T I V E S U M M A R Y | Global companies are changing their operating models to meet increasingly complex demands on their businesses. Too often companies struggle with how to effectively adapt their demand planning operations as these models evolve. If not done right, it can lead to unclear and inaccurate forecasting, ultimately putting the long-term viability of the business at risk. The fundamental approach to demand planning needs to change. There is no “one-sizefits- all” approach. Different operating models require different processes. Whether it’s a global operating model leading by regions or a country-led model, both are favored by a number of major consumer goods companies. A “hybrid” model of demand planning is required to achieve the most effective process and desired outcome. Some industries, such as consumer goods, are recognizing the importance of such a model and are beginning to adapt it, while others want to take the leap now. THE EVOLVING LANDSCAPE Consumer products businesses have initiated their demand and supply planning from the country of operations for many years. This ...