Wednesday, 19 August 2020 09:37

Importance of Demand Forecasting During Covid-19

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Demand forecasting Software is used to predict independent demand from sales orders and dependent demand at any decoupling point for customer orders. The enhanced demand forecast reduction rules provide an ideal solution for mass customisation.

The Entry Point of Your Supply Chain, especially useful in these hard times

Everything starts with a good forecast. Every supply chain manager knows this. Demand is the crucial start point for any company’s strategy. It is critical to know your natural demand in order to be able to control and shape it. The tools and techniques needed to shape demand are collaborative and need to be integrated with intelligent analytics in one place.

 

Demand forecasting is used to predict independent demand from sales orders and dependent demand at any decoupling point for customer orders. The enhanced demand forecast reduction rules provide an ideal solution for mass customisation.

Short Term Demand Forecasting During Covid-19

Knowing how consumers are impacted by COVID-19 is a key step towards developing a short-term demand forecast to make better response decisions. This can be done by collecting and analysing sales data through POS, customer orders or other methods that capture consumer demand changes for each SKU-region combination. Forecasting models can be augmented with publicly available COVID-19–related data such as virus trajectory, lockdown periods, macroeconomic indicators as well as internal business data including product hierarchies, attributes, price and promotions. This approach increases the predictive power of models that only have few weeks of demand history reflecting the current environment.


Better Data, More Accuracy

There is no doubt that an accurate forecast will produce better results. Generating fast, timely, and precise forecasts will strengthen your organisation from end-to-end. The demand forecast is the jumping-off point for all of your decision making, so there is a definite advantage in starting from a strong position.

For a holistic result, you can apply a Variety of Forecasting Methods from different sources. When you consider your data from a range of viewpoints, your forecast will be significantly more accurate. While one model might be more suitable to your company than another, considering as many angles as possible will highlight gaps in reasoning and provide a more flexible and accurate result.


Demand Forecasting Category Forecasting model can be augmented through different sectors and industries

Advantages of Demand Planning Software for Sales Forecasting

  • The use of intelligent statistical methods and machine learning techniques. Complexity is not an obstacle to reliable sales forecasts anymore
  • An efficient collaboration between the planner, who remains responsible for reliability, and all the stakeholders in the company, including sales teams, marketing, finance, supply chain, customers, etc
  • The integration of powerful algorithms to automate the forecasting process whenever it is possible
  • Intelligent sales history cleansing, neutralising outliers without any human intervention. The planner can now focus on fewer, more relevant items
  • A control tower interface to see the priorities at one glance. The demand planner has all the tools needed to interact with all the stakeholders of the collaborative forecasting process
  • Ergonomic graphical dashboards and reports.

Demand Forecasting Using Dynamics 365

Dynamics 365 for Finance and Operations has evolved into purpose-built applications to help you manage specific business functions. To help guarantee the accuracy of demand forecasts, you must have as much historical demand data as you can get per item or item allocation key.

To generate the baseline forecast, a summary of historical transactions is passed to Microsoft Azure Machine Learning hosted on Azure. Because this service isn't shared among users, it can easily be customised to meet industry-specific requirements. You can use Supply Chain Management to visualise the forecast, adjust the forecast, and view key performance indicators (KPIs) about forecast accuracy.

Demand Forecasting Software

Azure Machine Learning can bring in leap bound features in Dynamics 365 Finance and Operations in various areas. Starting with inventory forecast, it could also benefit financial and other areas. A time consuming mundane activity of forecasting thus gets propelled by AML and Dynamics 365 together.

With the ever-growing need for relying on technology to produce/forecast upcoming trends, sales projections, planning for cash, and inventory, cloud-based machine learning plays a vital role. Not only does it augment human decision making, but it also adds and computes millions of combinations to get the best possible judgment.

Read More how to setup Demand Forecasting using Azure

Benefits

The flexibility of Dynamics 365 for Supply Chain Management solution allows user to adapt continuously to the evolution of their business and the development of the company. This software offered a business solution, proven in the market and in various industries.

It conforms to most of user expectations, there were no grey areas, whether it concerned performance or implementation. Enhance the existing supply chain processes in no time.

Demand Forecasting

COVID-19 has exposed the vulnerabilities of many traditional demand forecasting and planning processes. As companies recover from this crisis and restore their operations, they should view this event as a learning opportunity to transform and evolve those processes and prepare for the inevitable next disruption. Shift to Demand Forecasting Software for better insight and business reinforcement on steroid, creating an ultimate operation experiences while saving cost.

Metisc

Metisc is a Perth based Dynamics specialist and an Independent Software Vendor providing software and integration services to customer in consumer, corporate, government, education and small to medium businesses.

 

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