Demand Planning Software

Planning for and meeting expected customer demand can be a tricky balance for retailers and wholesalers unless they are utilizing best-in-class demand planning software. Demand planning software enables the forecasting of future consumer demand for products, the planning of inventory levels and inventory placement to meet this demand and the creation of optimal supplier replenishment orders.

Calling this end-to-end process “Demand” Planning recognizes the fact that actual customer demand is what needs to be driving all aspects of the business, as today the customer is truly in the driver’s seat. An effective demand planning solution can improve revenues, margins and service levels while minimizing inventory and stock-outs. Now let’s break it down and look at each of the steps in the demand planning process.

Demand Forecasting Provides Accurate Forecasts

Demand forecasting automates the production of forecasts based on demand history with the goal of generating the most accurate forecast of future demand possible. It is a complex process as each product is unique and needs to have the right forecasting algorithm applied to it. You can imagine how the complexity scales as SKUs proliferate. Some products may have erratic demand while others are seasonal. Some products may have spikes in demand due to promotional activity which need to be normalized or future over stocks could occur. And then there are products with lost sales due to stock-outs. Not accounting for out-of-stocks in the past will only lead to more in the future. With smarter forecasts that represent accurate demand, organizations can avoid poor forecasting outcomes like over stocks, product obsolescence and lost sales.

JustEnough Demand Forecasting

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JustEnough Demand Forecasting delivers sophisticated forecast modeling algorithms that generate a forecast that’s based on true demand history. And better yet, you do not have to decide which forecasting algorithm will be the most accurate – JustEnough's demand planning software does that for you.

Using sophisticated forecasting algorithms, JustEnough's demand planning solution generates a baseline forecast by automatically running a series of forecasting methods to determine which is the most accurate for each SKU. In the tournament of best fit, at least 14 world-class forecasting methods compete against each other to determine which method should be used for each SKU. Each model is back-casted and compared against actual demand. This best-in-class system is able to determine which forecasting algorithm will be the most accurate for each SKU, taking the guesswork out of the planning process.

JustEnough Demand Forecasting keeps up with trends and seasonality. Seasonality captures the year-over-year recurring pattern that’s typically visible in either weekly or monthly periods. Trends are calculated by removing recurrent and periodic variations. This way, you won’t misinterpret seasonal variations as growth or decay. Promotional uplift is also accounted for and the history normalized so that the future forecast does not account for a promotion which may not be run again. And lost sales due to stock-outs are accounted for helping to ensure the same sales are not lost again in the future.

The JustEnough demand planning solution does the heavy lifting and users can then manage by exception greatly increasing productivity. Users can also apply their unique knowledge of the business to the forecast using manual overrides. The result is accurate demand forecasts that are easy and fast to produce.

Inventory Planning Optimizes Inventory Investments

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Inventory planning automates the production of inventory plans that take into account future demand, current inventory, service level targets and the ABC classification of products, in addition to other factors. This is a critical step in the demand planning process, as purchasing inventory ties up capital.

In order to optimize inventory investment, organizations may vary the service level targets of products and/or classify products by the amount of safety stock they should have based on their importance to overall business objectives. Omni-channel commerce has added another layer of complexity which is where to physically place inventory. Many organizations are deciding to implement an inventory planning postponement strategy that delays committing or pushing inventory to stores or channels until it is required. For example, at the start of a season some inventory is sent to stores while the rest is kept in centralized warehouses. Once actual sales show what is selling where, the inventory can start to be replenished or “pulled” out. This avoids the issues of pushing out all inventory at once, including having inventory at the wrong place, out-of-stocks, markdowns and inventory transfers.

JustEnough Inventory Planning

JustEnough's Inventory Planning ensures your products are in the right place at the right time. Not only that, the solution makes it easy to identify the inventory you need to focus on for high profit margins and low inventory carrying costs. JustEnough automatically sets the inventory policy for both safety stock and order quantity to achieve the customer service levels you are targeting by customer, by product and by location.

Additionally, JustEnough can classify your most important and least important product lines using Pareto’s method of ABC Classifications. This automatically reclassifies items, making sure your most crucial product lines always get the most investment.

Useful in capacity planning and for cash flow purposes, JustEnough Inventory Level Projection graphically displays the expected changes in inventory over a future time horizon. At any point in time, the projected inventory level represents the balance of incoming supply and outgoing orders based on your inventory targets and forecast requirements. The result is you’ll be confident that the right amount of inventory will be at the right place at the right time to satisfy customer demand and meet your financial objectives.

Replenishment Planning Optimizes Service Levels

The last piece of the demand planning process is replenishment planning. The primary goal of replenishment planning is to maximize sales and optimize service levels, while minimizing inventory investment. This step in the process keeps the inventory flowing downstream while maintaining efficient order and line item fill rates. The process helps prevent costly inventory overstocking.

Replenishment planning produces forward-looking, time-phased ordering plans that consider both the demand forecast and the current inventory plan. The result is the most cost-effective ordering plan to achieve targeted service and inventory levels. A clear, end-to-end strategy helps you to make better decisions by considering safety stock, fluctuating demand, seasonality, pricing vendor minimums, lead times and more. Increased visibility into profitable vendor discounts and promotional opportunities helps to improve margins.

JustEnough Replenishment Planning

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JustEnough’s Replenishment Planning solution ensures the appropriate inventory necessary to meet sales and service level targets is available and where it needs to be. This improves inventory turns and in-stock availability reducing markdowns and increasing customer satisfaction. JustEnough helps you to better control the overall inventory replenishment process, reducing inventory risk and freeing up capital.

JustEnough's Replenishment Planning enables full planning and order flexibility by providing alternative methods of replenishment. All product flow combinations within a distribution network are available from drop-ship suggestions to distribution center replenishment, to inter-branch inventory transfers of excess. Correctly managing the product flow through your network, JustEnough enables you to optimize your product availability.

Whether it's a purchase order minimum or an imposed container fill rate, real-world situations often constrain your ability to replenish orders as you'd like. JustEnough provides a quick and simple wizard to help you approve line-item orders that meet those constraints. The resulting purchase orders release more quickly, reducing planner workload and lead time. Planning by exception is essential to prioritizing workflow and reducing your workload. JustEnough lets you reduce the clutter by applying filters that limit the number of items retrieved. This way, your attention can focus on actionable SKUs, not on sifting through data. Filters within the inventory dashboard are easy to build, deploy and even share with your team, providing a one shot review of the health of the business from an inventory and sales perspective.

JustEnough Demand Planning Solution

JustEnough´s demand planning solution enables you to improve your demand forecasting and inventory planning to significantly reduce working capital requirements. With the JustEnough demand planning software, you will be able to

  • Formalize Your Supply Chain Process
  • Put Demand in the Driver’s Seat
  • Focus on Balancing Service Levels and Inventory
  • Postpone Committing Inventory
  • Increase Open-to-Buy Frequency

JustEnough's demand planning software accurately calculates the true demand for your product and exactly the amounts you should be replenishing to avoid overstocks, stock outs, product obsolescence and lost sales.

Benefits of advanced JustEnough Demand Planning

  • Higher forecast accuracy
  • Improved planner productivity with automatically generated plans and exception-based reviewing
  • Increased customer service levels while minimizing inventory investment and accelerating inventory turns

Take the tour - choose an area to start:

Demand Forecasting

Get accurate, demand-driven forecasts that cover:

  • Forecast Tournament
  • Trend & Seasonality
  • Lost Sales
  • Supersessions
  • Manual Adjustments
  • Promotions
  • Group Forecasting
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Inventory Planning

Ensure your products are at the right store at the right time:

  • Inventory Policy Management
  • Service-Level Targeting
  • ABC Classifications
  • Inventory-Level Projection
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Replenishment

Manage what's on your shelves with automatic replenishment, including:

  • Drop Ship Planning
  • Constraint-Based Purchase Orders
  • Exception-Based Order Review
  • Inventory Dashboard
Take the tour →

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