Demand Planning

Responsiveness and agility forecast inventory demand.

Where do you fit in this model?

Demand Planning performance measurement maturity model

Internal

Metrics exist within the company but are not aligned. They are mostly financially oriented and do not drive performance.

Integrated

Metrics are cross-functional, process-based, and supply chain wide. They are linked to overall business objectives.

Collaborative

Metrics are set and monitored in real-time among supply chain partners. KPIs and balanced scorecard systems are deployed.

Adaptive

Metric system continually monitores and responds to the environment combining prediction, optimization, and adaptability.

Can Machine Learning shape the future of Demand Planning?

Have you ever wondered how Netflix knows exactly what kind of TV series you want to watch, or how Facebook recommends all the right people to send friend requests to, or how Google Doc’s search bar randomly pops up with the document you were going to search; before you even typed anything?

ZARA: Faster sales powered by a customer-driven Demand Planning

Global retailer ZARA has taken “fast fashion” to a whole new level by consistently shattering industry averages for getting their designs into their stores and turning over their inventory.

Design-to-store in 15 days (industry average: 6-9 months)

85% of factory capacity reserved for in-season adjustments

Up to 12 inventory turns per year (industry average: 3-4 times per year)