Using Exception Management to Improve the Demand Forecast

Given the mass of data and information generated by today’s planning and execution systems as well as the complexity and volatility in demand, an effective and efficient exception management process is the key component to good demand planning. This article outlines steps to be followed to manage exceptions and challenges ahead. ALAN L. MILLIKEN | Mr. Milliken is an internal consultant to BASF Corporation s Business Process Optimization Group. He has over 30 of years experience in manufacturing and distribution operations including demand and supply planning, inventory control, production operations, logistics, quality control, and project management. He teaches supply chain management both within and outside the company. T T he significant downturn in the economy and the associated volatility in demand have highlighted the need to identify and manage exceptions both in planning and execution. The recent disaster in Japan exemplifies the importance of exception management in the supply chain. Advancing information technology now enables complex and near real-time identification and management of exceptions. Exception management should be applied as part of the consensus ...