Most demand planning systems and processes in the market today evolved before the widespread availability of shelf level information. Even though many of the systems allow forecasting at the major customer level, the forecasts are based on historical information, together with high level human input. They do not have the ability to utilize the real time visibility provided by retailer data and incorporate that data to make adjustments in the short-term forecast. They are slow to react, causing lower service levels and higher inventory. They do not comprehend which levers to pull to respond to the retailer and consumer decisions – the ability to influence the retailer’s forecast, pricing, and replenishment parameters, the ability to utilize store presence to make adjustments at the store and the ability to utilize VMI relationships to react faster to shelf level changes.
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