If you’re in stage one of demand planning maturity,
you’ll recognize these characteristics in your process:
• Demand is estimated based on years of “what has typically happened.”
• Future events can’t be accurately modeled. Instead, planners rely on best
guesses and judgment.
• Data is fragmented, with no centralized data repository or data management tools.
• Limited collaboration with lines of business and commercial functions, such as finance, sales, marketing and supply chain. Reporting is descriptive about past results but not predictive.
• Data input and analysis are manual, time-consuming processes.
• No flexibility in reporting as the external environment and buyer behavior changes. Important: Relying on historical data is one major reason why this approach is outdated and won’t deliver precision in today’s cross-channel environment where you must be able to plan – especially in times of socioeconomic disruption.