Improve Demand Forecasting within SAP ERP and Reduce Inventory Cost
Nobody has a crystal ball, but with emerging demand forecasting algorithms we are getting closer to more accurately predicting the future. When it comes to inventory optimization, planning ahead for what’s around the corner is more than a novelty, but an invaluable business advantage that can make the difference between a profit and a loss.
Insight Brings Major Impact
As we approach year’s end and reflect on sales and budgets, many of us will ponder how business could have fared with a bit more insight. What if you’d known what was coming next? What if you could predict what’s ahead even ten percent better? What kind of impact would that make on your business? Accurately predicting demand not only improves the bottom line, but helps companies anticipate and avoid outages, stop overstocking and carry less inventory along the way.
Unfortunately, most Demand Planners using SAP ERP are still struggling with accuracy. Some use manual spreadsheets while others complete the arduous process of exporting data outside SAP for analysis. In both scenarios, the process is inefficient and frustrating, and businesses continue to run the risk of stock outs or carrying excess inventory.
Better Planning For the Year Ahead
While 2016 may not be the year we invent time travel, seeing into the future of demand is getting closer to reality with G.I.B Dispo-Cockpit Forecasting (DCF). In as little as six weeks, we can implement this SAP ERP add-in, allowing you to run multiple forecasting algorithms simultaneously to determine the best fit by SKU.
NTT DATA Business Solutions customer GK Foods a division of GraceKennedy, one of the largest single-entity food manufacturers in the Caribbean, has already seen the benefits of improved forecasting. GK Foods Demand Planner Damion Davy uses DCF to forecast demand for the company’s broad line of food and beverage items:
“With G.I.B Forecasting we have been able to improve our forecast accuracy which has directly lead to carrying less inventory, improving our inventory performance by 20 percent, while maintaining our high service level.”
It’s time to stop asking ‘what if’ and start looking ahead. Consider what better demand planning could do for your organization.
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This is part two in an NTT DATA Business Solutions blog series exploring solutions for Demand Planning & Inventory Optimization within SAP ERP. Follow the series: