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Route to Market & Supply Chain Blog

“People know more than computers”. Especially about Demand Planning

Posted by Christian Cusworth on Mon, Apr 19, 2010

"We don't have a proper forecasting tool", "everyone has their own spreadsheet" "issues with the EDI interface", "the systems don't talk to each other", "the upload to our ERP system failed". How many more IT based excuses for poor demand planning must we hear before we realise that we don't really need computers at all.

 Systems don't talk to  each other

In this modern world of chronic over dependence on computers, furious tapping of blackberry's and the evolution of "text speak" we must at some point gather around, drop large 80's style monitors (remember those?) upon each others heads, and remember that these machines only facilitate the sharing of information or regurgitate what we humanoids have previously told them.

Required to succeed in Demand Planning for example is knowledge and awareness of consumers, products, markets, environment, competitors, trends and importantly a qualitative and concise communication process for sharing this information (S&OP), with the business. Remember that a change in demand is always the result of a human decision, so why bother relying on a computer to lead the planning process? Try communicating with humans; they make the decisions, at least for the moment.

Communication process for sharing information

If you prefer to receive this information by carrier pigeon, please go to your window and coo four times.

On next weeks blog - How to be successful at cooing for carrier pigeons.

Tags: S&OP, Forecasting & Demand Planning

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