To say COVID-19 was devastating for retail and convenience is an understatement. Supply chains weren’t just disrupted; they were thrown into complete chaos. The waves from the supply and demand ripple effects quickly grew, wreaking havoc on the already fragile infrastructure that is the modern-day global supply chain.
While the timeline for when supply chains will return to normal is uncertain, what we do know is that retailers, c-store operators, CPG, and brands have to continue adapting in order to move forward.
Now is the time to start refocusing your supply chain.
There is always a fine balance between having enough inventory on hand to not miss sales without overstocking. Understanding and making decisions based on true demand is so crucial. Even before the devastation of 2020, stocking the right amount of inventory was difficult for some to master. This challenge has only increased in recent months.
Many businesses look at historical data to “predict” demand. Traditional forecasting methods like this rely too heavily on past trends in order to plan for the future. When an unexpected event causes such disorder, historical data can become useless. Unpredictability is the last thing you need to worry about in this situation.
Before you can know what to buy, you need to know actual demand. Actual demand can only be found by looking at not only what is selling today, but also what could or should have sold across every channel. Without a strong foundational demand planning solution in place, this can become a guessing game. Understanding actual demand can ensure businesses buy the right quantities to support the lifecycle of a given item before and during its main buying season. It can also help businesses know:
- What inventory to carry
- What the optimal pricing should be for any given SKU
- How to manage store/location resources effectively
- How a promotion will perform
For over 20 years, 4R has been helping businesses refocus their supply chains by improving their stability and resiliency. A resilient supply chain is one that can rebound quickly after difficulties or disruptions.
4R’s demand planning solution is powered by machine learning and AI. Meaning, it helps pave the way to a more resilient supply chain by figuring out actual demand for you. It also enables you to see the risks and rewards of your supply chain. Not only that, but it also helps position it for a new level of growth.
We can help you refocus your supply chain and provide the clarity you need to:
- Improve supply chain efficiencies
- Effectively distribute inventory
- Ensure your forecasting is accurate
Don’t wait for things to improve on their own. Be proactive and take the first step. Contact us today at email@example.com to learn more about 4R’s demand planning and how it can help you refocus your supply chain.