What’s Wrong with Demand Planning in ERP Tools
One of the most frightening thoughts a demand planning professional can have is, “Uh oh. It’s the CFO again. She wants her working capital back.”
You try all the tricks and strategies to rock forecast accuracy in the ERP planning tools you have at hand. You go into the ERP system and export hundreds of thousands of lines of inventory data into your handy-dandy Excel spreadsheet every day. And do your best.
Yet, out-of-stocks and unsold inventory remain a heavy anchor on the P&L every time it gets unfurled in front of you. Questions fly, and you begin to sweat.
“Why do we have so much cash tied up in safety stock, yet we’re still losing sales because customers can’t the products they need consistently?”
Today’s Supply Chain is Cruel.
Is there any light at the end of the tunnel for distributors competing in today’s highly digital, competitive, volatile market? I mean, for real.
“Let’s see… Which reason will I blame today when my CFO taps on that door?”
Take your pick:
- Inaccessible supply & incomplete orders
- Anyone’s-guess lead times
- Increased competition & the fear of Amazon cutting you out of the supply chain
- Broader assortments & new suppliers with complex constraints
- Rising costs to deliver anytime, anywhere delivery & fulfillment preferences
- The good ‘ole standbys: seasonal, intermittent & slow-moving demand items — now with a pandemic thrown in (just for fun)
Distributors, it’s Not Your Fault. But You Need a New Game.
Because the supply chain ecos has gotten so complex, demand planning in ERP has also become a Herculean effort for distributors. It requires heavy manual effort to get supply and demand data from the ERP into the forecast, and then back into the system. This results in endless hours wasted, along with inaccuracies that rack up millions of dollars per year in overstocks, stockouts, and “WTFs?” from both customers and your CFO.
Wouldn’t it be great if your demand planning team could achieve 98%+ forecast accuracy, consistently, without ever having to export another spreadsheet from their ERP again? It is possible!
Contact Blue Ridge to gain some proven strategies that will forever change the results and efficiency in your everyday. We’ll listen to your unique challenges and create a tailored conversation to help you learn:
- Super-simple, frictionless steps to integrate demand planning into your ERP
- Value that other customers realized by getting faster, more reliable insights into lead times & supply shortages, broader assortments, seasonal demand, supplier complexities, rising costs, increased competition & new selling channels
- Real ROI metrics they achieved in <90 days, including near-perfect forecast accuracy, 10-20% inventory reductions, new working capital & consistent customer service awesomeness