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Tag Archives: Demand Driven

7 Reasons Demand Driven Is More Than a Buzz Word

What Do You Really Know about Demand Driven

Demand Driven sounds impressive doesn’t it? Sales and marketing people keep saying you need to be ‘Demand Driven’ and let’s be honest, most marketing and sales folks are like politicians, they can say a lot that sounds amazing but do very little to support their message or meaning. To understand the importance of Demand Driven, you need to identify what is true and what is false about Demand Driven concepts, otherwise the Buzz Term Demand Driven just becomes a Buzz Kill.
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The Truth About Demand Driven Inventory Replenishment

Inventory Replenishment Software’s Hidden Agenda

Demand Driven Inventory Replenishment sounds nice. If your inventory replenishment software uses demand forecasting and incorporates demand concepts to calculate what products to order when and how much to order, tell us have you reached perfection? Sadly, most inventory replenishment software apps are missing a critical component – profit. Most Inventory Replenishment software was written to focus on meeting plan and staying in-stock. A quick review of the number of retailers who have gone away in the past 3 years highlights the success of that strategy.
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Common Demand Driven Issues: Which Do You Fix First?

Revolutionize Your Demand Driven Business

Running an efficient business is vitally important in today’s business climate. With so many variables, though, that can be an extremely daunting task to accomplish, and many ‘solutions’ are ineffective or provide minimal impact, taking years to pay for themselves. Demand Driven is a concept people think they have mastered when in reality it is the link in their chain that needs immediate attention. Let’s take a look at a few of the areas that should get special attention to make sure your business is Demand Driven.
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The-3-Demand-Driven-Secrets-that-Raise-Your-Profits-Where-Do-You-Start‘Demand Driven’ is the link missing in many supply chains. Many software sales people have muddied the term ‘Demand Driven’ with sales forecasting and demand planning to confuse the buyer. To ‘Tighten the Links in Your Chain™’, you need to determine your weak links, and of these, which will deliver the best ROI when replaced. Demand Driven concepts are often misaligned with old processes and systems. That’s why demand driven process are always a great place to look for new opportunities to improve.

What you don’t know about demand driven retail will cost you…..

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Demand Driven Do's and Don’ts: 3 Keys to Retail Success

Demand Driven Supply Chain Don’ts

Demand Driven retail/ wholesale companies stay ahead of the competition by focusing on three key areas in their supply chain. In addition, demand driven retailers and wholesalers know you will resist change and stay focused on sales and gross margin, failing to allow GMROI to impact operating decisions. Demand driven retail / wholesale companies understand you and the competition stay focused on fast profits, growing sales and increased customer counts without reviewing the cost of acquiring those customers or learning why existing customers didn’t spend more due to out of stocks resulting from lost sales. Demand Driven retail / wholesale companies know the things to avoid by watching the competition’s mistakes. Resisting change and staying focused on old business concepts and numbers doesn’t work in the marketplace anymore.
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The Little 2013 Holiday Demand Forecasting Mistake that Cost Thousands

Holiday sales kicked off to the slowest start since 2008 according to many reports. The lack of sales and margin is highlighting the bigger issue facing retail/ wholesale companies: old supply chain technologies and processes that no longer fit the customer demand buying patterns. The result of poor supply chain software and process is excess inventory. Your inventory has financial carrying cost and operational cost that together devour your company’s profits. Your excess inventory will lead to markdowns that lower gross margin and further decay your company’s profits. Maybe you are making the same little mistake that has driven others out of business…
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How To Get Rid of your Planners Once and for all

Demand-Driven Forecasting discussions seem to run into a debate on the differences between demand forecasting and planning. We know how new technologies have moved beyond many planner job descriptions, some still think a planner and inventory manager are the same. Unfortunately, many people don’t realize the value proposition that bottom up, demand-driven retail delivers; they continue to use the old planning models and rename their process as demand-driven. I sat in on a presentation for an international retailer a short time ago. They were a mid-tier retailer with sales in excess of $500M, a strong web presence, and stores found in shopping centers and malls. Their products are purchased by male and female shoppers resulting in strong return shopper experiences and new customers which deliver strong sales growth year after year.

Attendance for our meeting included the CIO, Chief Merchant, Director of Forecasting, planners, and inventory management people. They told us their goals were to reduce operating capitol but maintain service levels for the web and store customers. The company wanted to increase turns while re-purposing the capital from inventory into new stores and acquisitions. The irony of the meeting is that while they used words like Demand Driven retail and Demand Forecasting, they were really talking about planning and goal setting. They believed that allocations were great and had never even thought of discussing top down versus bottom up as two distinctly different methodologies that are used to achieve entirely different goals. Read More