Should You Take Demand Planning to the Cloud?
Supply chain management is at the heart of global business in the 21st century, essential for providing customers with the products and services they need, streamlining operating costs, and boosting bottom lines of enterprises all around the world. Successful supply chain management depends upon accurate demand forecasts, making laser-targeted, advanced-demand planning the core of your supply chain.
Because of the crucial role that demand planning plays in enterprise success, we decided to share reasons why it makes sense to migrate the supply chain planning process to the cloud. Here are just five of them.
1. Exceptional Visibility
First, when supply chain planning takes place in the cloud, your team is provided with real-time visibility, allowing you to effectively manage and address supply chain risk. Did, for example, sales spike in a region? If so, will production be able to meet that demand? If not, what adjustments need to be made, by whom and by when? Data needed to make these decisions can be found in real time, with the information readily accessible by team members around the globe.
Next, you can provide supply chain visibility to customers, suppliers, and trading partners, especially important at the part of the supply chain that’s closest to points of consumption. Plus, you can collaborate with your demand planning team across corporate divisions in multiple geographies as you scrutinize predictive analytics.
2. Dovetail Demand with Profitability
When your enterprise team is confident in the real-time data provided, your team can shape and refine demand for maximum profitability. Your team can strategically drive demand through the promotions you offer, and offer new and/or improved products and services in a way that maximizes revenue and profit, at exactly the right time. Demand planning in the cloud allows your enterprise to precisely balance supply and demand so you continue to meet the needs of customers on schedule without an excess of inventory, crucial for profitability.
3. Continual Improvement
As supply and demand data is made available to your team in a seamless, highly visible manner, you can continue to execute and improve upon best practice demand planning. You can continue to refine inventory optimization, demand management, sales and operations planning, and more.
4. Reduce Cost of Ownership
Your enterprise can benefit from prebuilt supply chain planning solutions that integrate all components of your global supply chain operations. On-premise solutions typically require a significant portion of your IT team’s time and attention, which often leads to increased expenses, and this can become a drain on corporate profitability. Cloud solutions can streamline costs for enterprises, leading to increased profitability.
5. Synchronize Operations and Corporate Goals
The high level of real-time visibility in cloud-based demand planning will allow you to create a symbiosis between operational planning and your business goals. That’s because you can so closely synchronize daily operations with company vision and mission initiatives, including social missions important to your enterprise.