How to Effectively Manage Demand with Demand Sensing and Shaping Using Point of Sales Data

How to EFFECtiVELy ManagE DEManD witH DEManD sEnsing anD sHaPing using Point oF saLEs Data By Karin Bursa P P redicting what and when the consumer will buy has never been an easy process for manufacturers or retailers. Burdened by the daunting task of precisely matching supply with demand, manufacturers are constantly improving processes to achieve the highest forecast accuracy to ensure when the consumer walks into the store, the product they are looking for is on the shelf. During times of economic uncertainty, the need for more accurate forecasting becomes increasingly critical as companies work to trim costs in the supply chain to ensure stability and profitable growth—without sacrificing customer service. With this in mind, manufacturers are actively looking for the best methods to gain visibility or “sense” consumer demand. These efforts have included programs such as Vendor Managed Inventory (VMI), Efficient Consumer Response (ECR), and Collaborative Planning, Forecasting and Replenishment (CPFR). But each of these initiatives has challenges and does not necessarily capture true consumer demand. With VMI and ECR, inventory policy management drives the replenishment ...