Supply Chain Environmental Changes and Future Demand Forecasts

The acquisition of agility through the sophistication of demand forecasting will enhance SCM's resilience through sales & operations planning (S&OP).

二月 2021 , 撰写者 YCP Solidiance
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The manufacturing industry's supply chain is expanding globally, and while the environmental uncertainty surrounding it is increasing, consideration for human rights and the environment is becoming more inevitable. In particular, due to the spread of the new coronavirus infection in 2020, supply chain demand in various industries has surged and decreased, while supply has been disrupted and significant disruptions have occurred. In such an era, companies that actively introduce advanced technologies such as AI, can respond to them, which will increase their competitiveness.

In such a changing business environment, the concept of S&OP connecting management and supply chain management (SCM) becomes essential. However, not many companies in the world have succeeded in this implementation. Implementing S&OP processes to achieve increased inventory turnover and ROA improvements requires operations tailored to each company’s business model, the number of SKUs, environment, and strategy.

A sophisticated demand forecasting can effectively implement S&OP. Ensuring the agility of how to detect environmental changes at an early stage, and make decisions in a highly transparent process using quantitatively evaluated data as well as reliable qualitative information are essential to advance demand forecasting.

YCP Solidiance has developed and released a free diagnostic tool, allowing companies to assess their current demand forecasting operations’ maturity based on practical knowledge of demand forecasting. The operation diagnosis results of this demand forecast are then accumulated and analyzed. In this white paper, the diagnostic products and overall trends are also introduced using the manufacturing industry.

Project Overview: https://questant.jp/q/demandforecast.

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