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The Upside Of Customer Demand Planning

By Angela Moore


When it comes to forecasting the interest in soon to be released products, there are several aspects. In one case, customer demand planning or CPD enables sales and marketing teams to develop forecasts based on planning as related to revenue, inventory, production and service processes.

CDP is also an important and integral part of the marketing process when it comes to the management of value chains. For, it can often be easier for managers to plan the deployment of employees and other resources necessary to take the product from the planning phase to the marketplace. As such, by using CDP, managers can use such data in a number of different ways.

When it comes to CDP, it is an approach which works from the bottom up rather than top down. While this is the case, there are some risks. The associated risks include low forecast models, the accuracy and the number of planners required. For, while top down systems provide directions to employees, employees in a bottom up system are often exposed to more risks in the process.

While there are software applications and programs which can assist with CDP, some are better than others. As such, it is important that managers read reviews and select the one which is the best as related to product type. Whereas, there are also retail models in which manufacturers and retailers work in partnership to eliminate the middle man approach. In doing so, both tend to cut costs over time.

The complexities and challenges when it comes to discovering various markets are numerous though vastly different from those which suppliers such distributors and manufacturers face. As a result, the technology related to demand management for the merchant is also different compared to the manufacturer or brand on the supply side. In one case, demographics often play a major role with regards to interest in products in different areas of the world.

CPD includes customer service, demand creation inventory, technology, sourcing, pricing optimization, travel optimization and channel management. For, if a company can not plan for the results of a product release, most will not be successful in the long run. Whereas, those whom can predict and prepare for the number of products to be released to the marketplace based on a demand forecast, then most often success will follow.

Like in other areas of business, new technologies are assisting in forecast and predictive analytics in this area. For, this type of planning is changing the way different companies perform and operate before becoming competitive in the industry. In addition, with the evolution of these solutions, companies are now discovering new methods for cutting cost and increasing efficiency.

CPD being of assistance to companies with regards to productivity is not an accident. For, to be successful, companies have to be able to plan and forecast when it comes to product availability and desire so that delivery will align with public demand upon the initial release. As such, by using CDP, many companies are now experiencing more success than ever before in history.




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