DEMAND PLANNING

OUr Approach

Develop robust demand planning model based on historic data and sales forecast
Fix broken demand planning process to achieve greater planning accuracy
Implement SIOP to institutionalize and foster reliable communication and immediate feedback
Develop a collaborative planning methodology including customers and suppliers to optimize planning accuracy and to avoid excess inventory

SIOP
Collaboration
Delphi Method
Life-cycle Analysis

Manufacturing
Automotive
Engineering
Parts and Components
Steel and Metals
Food

4-8 Weeks

4 – 6 Months

Reference Project:
Demand Planning Optimization


Industry:	Leading Construction Components Manufacturer
Company Size:	2,000+
Project Location:	United States
Problem Statement:	After a period of substantial growth, our client received severe customer complaints due to declining OTIF (on-time in full) performance and an increasing finished goods backlog. 2 of their top 5 key accounts threatened to end the relationship, if the finished goods backlog would not be significantly reduced within a 2-4 months period.

STREAMLINERS’ Approach and Solution


Meeting:	Understand scale and impact of finished goods backlog
Deep Dive:	Root cause analysis revealed main drivers for backlog: no alignment between sales, planning, production and warehouse
Hypothesis:	Develop and implement SIOP (Sales, Inventory and Operations Planning) as a planning methodology and SIOP Loops as alignment routines among stakeholders
Project:	1 consultants 8 weeks
Deliverables:	SIOP and SIOP Loops implemented Backlog reduced by 35% (end of project) and by 75% (4 months after project start)
Bottom Line Impact:	Both key accounts retained due to substantially improved OTIF performance Order to cash cycle reduced Inventory and working capital reduced

Root Cause Analysis

Fees vs. Bottom Line Impact

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Discover the critical role of effective demand planning in improving inventory management, enhancing supply chain efficiency, and boosting customer satisfaction. Learn how strategic demand forecasting can drive financial stability and brand loyalty in today's competitive market.