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An Introduction to Demand Forecasting

Demand Forecasting is a fancy topic not just because it gives you psychic powers to know the future demand but also because it is an important part of the supply chain process since all the subsequent phases of supply chain are dependent on it. A key part of supply chain planning involves demand planning and the associated demand forecasting process. Forecasting is one of the three components of an organization - Demand Planning, Demand Forecasting and Demand Management process. Demand Planning helps us to find what we should do to shape and create demand for our product (Production, Packaging, Pricing, Planning, etc.). Forecasting helps us to find the upcoming demand and confirm whether a plan is in place to deliver. Demand management helps us to prepare for and act on the demand when it materializes (Sales and Operation Planning).

Demand Supply Gap in Business
There are two types of forecasts, a top-down forecast and a bottom-up forecast. A top-down forecast essentially estimates tota…
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BUILDING AND MAINTAINING A STRONG SUPPLY CHAIN NETWORK ACROSS THE FMCG SECTOR

BUILDING AND MAINTAINING A STRONG SUPPLY CHAIN NETWORK ACROSS THE FMCG SECTOR



Businesses and their essence have shifted from ancient resolved approaches of profit generation to client orientation and supported cooperative methods across the global market. Supply chain has evolved from a linear strategic model to a more dynamic one, requiring continuous knowledge sharing and knowledge visibility across the network; in addition to a real time cognitive process.
The Fast-Moving Consumer Goods business typically functions on the principle of high volume and low margins. As per Indian Brand Equity Foundation’s report published in August 2019, FMCG is the fourth largest business within the country and accounts for Rs 3.4 lakh crore (US$ 52.75 billion) of revenue. The FMCG sector consists of an array of merchandise starting from detergents, soaps, toothpaste, shampoos to food merchandise, confectionary, beverages, cigarettes etc. The buyer generally doesn’t stock these goods as they're per…

SUPPLY CHAIN NETWORK DESIGN

SUPPLY CHAIN NETWORK DESIGN- KEY DRIVER FOR PROFITABILITY AND SUSTAINABILITY
Supply chain network design is a process that determines the best mix of suppliers, locations, logistics and production facilities for optimizing product manufacture and distribution. The network design addresses industry solution like where to source raw materials, how to transport products, what's the optimal location for production lines, product storage warehousing, and the best methods for delivering goods to customers.It uses methodological approach to determine the best location and optimal size of the facilities to be included in the supply chain, and to ensure an optimal flow of products using advanced statistical and analytical modelling.

Plants, suppliers, and warehouses are foremost entities which are part of supply chain network. For any successful supply chain, the number of facilities and their locations are a critical factor and how the product flows from each of the origins to the final cus…

Importance of route planning for India, given huge surge in e-commerce demand

Importance of route planning for India, given huge surge in e-commerce demand

The growing demand of online products and on time delivery has become a challenging job in a country like India which is one of the fastest growing economies in the world. India’s e-commerce revenue is expected to jump from US$ 39 billion in 2017 to US$ 120 billion in 2020, growing at an annual rate of 51 %, the highest in the world. This growth also brings opportunity for the e-commerce companies to gain the market share which can be achieved by having competitive advantage of one organization to the other. The value created by the organization in terms of price, quality and delivery is driving the growth of the organization. This has increased the competition among companies to reach the customer in the promised time with the best value generation of the product. This has generated the need to go closer to the customer and improving the last mile delivery, whereas the optimization of the First mile has reac…