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COVID-19’s Grim Milestones: Change in Demand pattern is Real & Opens Up New Growth Areas

We might be amid the largest drawdown in demand since the Second World War. Having experienced a new way of living, consumers are recalibrating their spending, increasing the likelihood that spending may permanently shift between categories and that online services could get adopted far faster. Every country is experiencing greater shifts in people’s daily behaviours. The resulting demand shock cuts global GDP growth for 2020 in half, to between 1 percent and 2 percent, and pulls the global economy into a slowdown, though not recession. In this scenario, a global slowdown would affect small and mid-size companies more acutely. Less developed economies would suffer more than advanced economies. Unsurprisingly, sectors will be affected to different degrees. Some sectors, like aviation, tourism, and hospitality, will see lost demand (once customers choose not to eat at a restaurant, those meals stay uneaten). This demand is largely irrecoverable. Other sectors will see delayed demand. In …
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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…

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…