Building a Holistic Supply Chain with Consumption-Based Forecasting & Planning

Fall 2020

Journal of Business Forecasting Volume 39 | Issue 3 | Fall 2020

Over the past 30 years, the approach to demand planning at most retailers and CPG companies has remained stagnant, despite the increasing availability of data, advanced analytics, and technology. As a result, retailers and CPG supply chains lack true demand visibility leading to manual overrides and increases in buffer stock. We can use consumption-based forecasting and planning to solve these problems, gaining a clear picture of demand and linking it to supply planning for the supply responses. This approach creates the much-needed ‘holistic supply chain’ and, in the coming years, will become the new normal for retailers and CPG companies.

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