Analysts such as Cambashi have been using the term “the new normal” to refer to the economically uncertain, post-downturn economy. We expect the 2010s to see demand volatility, with sudden declines in orders and occasional large upswings. So companies face a new, riskier reality.
Does the new normal mean that demand management is of less value? No. It’s just more critical that forecasting based on statistical methods applied to historical data be only a foundation — not the centerpiece or end point — of the demand management process.
To support a full demand planning process for a fast-changing market, companies need software that provides these hallmark capabilities:
- Supports synthesis and analysis of multiple data sets, not just the statistical forecast. Allows input to the demand plan from external and internal sources that may contribute traditional structured data or relevant insights (typically unstructured data).
- Delivers appropriate levels of detail and flexibility in aggregating products and families. Provides a platform for collaborative processes, with workflow and process management capability.
- Is fast enough to run planning and analysis frequently — perhaps even daily. Some ERP providers offer good demand planning. Lower price-point products come from Cube Software, Demand Solutions, Demand Works, ForecastPro, John Galt, and Smart Software. Unfortunately, some other providers of simple forecasting tools are struggling financially. If your company uses such a tool from a small company, vet it for viability. If necessary, migrate to a stronger company, such as one listed here, to ensure that you get the proper support and improvements.