Disruptions to the supply chain can negatively affect businesses, causing decreased production, lost revenue and even bankruptcy. So, companies need to have a robust demand planning system to help mitigate potential disruptions. In this article, we will discuss the different components of a successful demand planning system and how Acumatica cloud ERP can help keep your business afloat during times of crisis.
What is Demand Planning?
Demand planning is the first step in a successful supply chain strategy. In fact, supply-side strategies can’t be built without it. Demand comprises two components: actual demand where orders have already been placed, and projected demand that estimates future customer orders.
To get an accurate picture of demand, businesses must consider historical sales data and current market trends. This information can develop a baseline forecast that you can adjust as needed.
Sales Order Demand Planning
Sales orders created by salespeople, blanket contracts, and EDI purchase orders represent actual demand right now and in the near future. Acumatica’s sales order management software helps with sales order demand planning by streamlining the sales process and helping businesses close deals. For example, Acumatica helps businesses with:
- Matrix Items: Acumatica uses matrix items to generate sales orders based on item characteristics for improved product accuracy.
- Item Photos: Acumatica uploads product pictures to enhance order accuracy for in-house sales and clients using connected storefronts.
- Item Categories: Acumatica organizes by category to provide better product identification with default values for each item class.
- Substitute Items: Acumatica can suggest alternatives to goods that are running low, which minimizes stock-outs.
- Stock Allocation: Acumatica keeps stock in the sales order entry system for consumer orders.
- Returns and Exchanges: Acumatica processes refund and exchange requests for clients who wish to change their account credit, refund, or exchange using reason codes.
- Pricing and Discounts: Create buyer price sheets and discounts to encourage volume purchases and orders during off-peak seasons.
Inventory Management Demand Planning
Having an accurate inventory is crucial for demand planning. You need to know how much stock you have on-hand, in transit, and projected to arrive. This will help you make informed decisions about production levels and what you need to source from suppliers.
Acumatica’s inventory management software gives businesses the visibility they need to make informed decisions about their inventory:
- Warehouse Transfers: Acumatica software creates replenishment profiles to determine how planned transfer orders will influence stock at each warehouse.
- Kitting: Kit sales provide insight into the demand for kit components.
- Item Class Hierarchy: Acumatica sets defaults for sales orders to improve data accuracy using Item Class Hierarchy definitions.
- Dead Stock: Inquiries provide information about outdated stock that businesses need to remove from the inventory.
- Quality Management: Connected Quality Management aids in the identification of suspect inventory and implementing corrective actions.
- Retail and Commerce Demand Planning: Disconnected point-of-sale and commerce apps hinder demand visibility, which leads to incorrect projections. Real-time data is essential for an effective demand planning strategy.
How Acumatica Helps with Retail and Commerce
Acumatica’s retail and commerce software gives businesses the visibility they need to make informed decisions about their inventory. For example, Acumatica offers businesses:
- Native Commerce Connectors: Connectors for small and medium-sized businesses can integrate data across Acumatica and storefront apps like BigCommerce, Shopify, and other ecommerce platforms. This ensures accurate demand planning on a single platform.
- Embedded Point of Sale: Acumatica Point of Sale is a solution for showrooms and retail outlets connected to inventory and sales order apps.
Bottom Line
Having the right components in your demand planning strategy will help mitigate supply chain disruptions. Acumatica can help you with inventory management, retail and commerce, and more.
Download this playbook to learn how supply chain disruptions can be overcome with Acumatica, a scalable and affordable cloud platform designed for growing businesses.