July 17, 2023
Planning maturity
In this video, we will discuss how to assess the maturity of a demand planning process. We will explore five key areas of maturity:u003cbru003e- Driver data quality: How well does the organization understand the drivers of demand?u003cbru003e- Demand planning process structure: How well is the demand planning process designed?u003cbru003e- Collaborative demand planning process: How rigorous is the collaborative consensus process?u003cbru003e- Use of ML/AI and statistical models: How effectively is the organization using ML/AI and statistical models to forecast demand?u003cbru003e- Organizational capability: How well are the organization's people and systems capable of supporting demand planning?
We will also discuss how to use this assessment to identify areas for improvement and make a plan to achieve world-class demand planning.
Demand planning is a critical process for any organization that wants to ensure that it has the right amount of inventory to meet customer demand. However, demand planning can be a complex and challenging process.
One way to improve the effectiveness of demand planning is to assess the maturity of the demand planning process. This assessment can help to identify areas where the process can be improved.
There are five key areas of maturity that can be assessed:u003cbru003e1. Driver data quality: How well does the organization understand the drivers of demand? This includes understanding the factors that influence demand, such as customer behavior, competitive activity, and economic conditions.u003cbru003e2. Demand planning process structure: How well is the demand planning process designed? This includes the frequency of forecasting, the level of detail in the forecasts, and the way in which forecasts are communicated to stakeholders.u003cbru003e3. Collaborative demand planning process: How rigorous is the collaborative consensus process? This includes the way in which different stakeholders, such as sales, marketing, and operations, are involved in the forecasting process.u003cbru003e4. Use of ML/AI and statistical models: How effectively is the organization using ML/AI and statistical models to forecast demand? This includes the use of data analytics to identify trends and patterns in demand.u003cbru003e5. Organizational capability: How well are the organization's people and systems capable of supporting demand planning? This includes the availability of skilled personnel and the use of appropriate software.
Once the maturity of the demand planning process has been assessed, the organization can identify areas where the process can be improved. This can be done by implementing specific improvement initiatives, such as:u003cbru003e- Improving the quality of driver datau003cbru003e- Redesigning the demand planning processu003cbru003e- Increasing the rigor of the collaborative consensus processu003cbru003e- Investing in ML/AI and statistical modelingu003cbru003e- Developing the skills of demand planning personnelu003cbru003e- Investing in demand planning software
By taking these steps, organizations can improve the maturity of their demand planning process and ensure that they have the right amount of inventory to meet customer demand.
