Creating operating rules for a logistics org.
A large supply chain organization lacking in demand planning expertise struggled to build reliable forecasts. The organization used a generalist model for employees, which inhibited the development of demand planning proficiency. There was also a lack of clear guidance and standardization for the demand planning processes, creating gaps in areas including portfolio segmentation, data preparation, and forecast model selection. Skill gaps and lack of process guidance, resulted in widespread inaccuracies in forecasts. WP&C led an enterprise-wide effort to reposition the organization for long-term functional excellence. Throughout the implementation process, we collaborated extensively with the organization’s leadership and subject matter experts, ensuring they were set up for success going forward. We helped the organization:
Employee skill gaps stemming from a generalist model, a lack of process guidance and standardization, and poor data quality across the portfolio made effective demand planning very challenging. This client employed large numbers of generalists who conducted demand planning along with several other supply chain functions. This model inhibited the focus and skill development of employees in any of these functions. Many employees lacked understanding of forecasting fundamentals and common models offered by commercial software.
Due to the heightened risk of demand planning error from the lack of training, employees were restricted from using all but the most basic forecasting model. While the basic forecasting model was fundamentally sound, it did not adequately account for the complex situations found across the product portfolio. Additionally, the portfolio lacked a clear or well-maintained SKU segmentation approach to support tailored forecasting methods.
WP&C developed a holistic approach to address deficiencies in demand planning, recognizing that isolated interventions would be insufficient without accounting for interconnected organizational factors. Our approach focused on four main areas:
WP&C made six action-focused recommendations to improve demand forecasting effectiveness:
The organization was able to move from non-standard processes and unreliable forecasting outcomes to a system with effective management controls that ensure forecast adjustments are structured and justified. WP&C’s holistic approach fostered collaboration across supply chain activities and domains, addressing forecasting challenges from multiple angles.
The organization now operates with:
Results:
Employee skill gaps stemming from a generalist model, a lack of process guidance and standardization, and poor data quality across the portfolio made effective demand planning very challenging. This client employed large numbers of generalists who conducted demand planning along with several other supply chain functions. This model inhibited the focus and skill development of employees in any of these functions. Many employees lacked understanding of forecasting fundamentals and common models offered by commercial software.
Due to the heightened risk of demand planning error from the lack of training, employees were restricted from using all but the most basic forecasting model. While the basic forecasting model was fundamentally sound, it did not adequately account for the complex situations found across the product portfolio. Additionally, the portfolio lacked a clear or well-maintained SKU segmentation approach to support tailored forecasting methods.
WP&C developed a holistic approach to address deficiencies in demand planning, recognizing that isolated interventions would be insufficient without accounting for interconnected organizational factors. Our approach focused on four main areas:
WP&C made six action-focused recommendations to improve demand forecasting effectiveness:
The organization was able to move from non-standard processes and unreliable forecasting outcomes to a system with effective management controls that ensure forecast adjustments are structured and justified. WP&C’s holistic approach fostered collaboration across supply chain activities and domains, addressing forecasting challenges from multiple angles.
The organization now operates with:
Results: