Demand Variability calls for Better Predictability in Forecasting
Fluctuating consumer demand results in demand variability across the supply chain. It gets more and more magnified as it moves upstream in the supply chain from the consumer to the manufacturer. This Bullwhip Effect disrupts the supply chains of retailers and manufacturers.
Our Supply Chain Management expert analyzes the factors that cause demand variability and proposes models that ensure better accuracy in demand forecasting.
The Unentertaining Game of Chinese Whispers in the World of Consumer Products Supply Chain
Strategies of retailers and manufacturers influence patterns of consumption and induce swings in consumer demand. Unless addressed, demand variability can lead to excess inventory and revenue loss.
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Measures to Effectively Channel Demand Variability
A change in pricing and promotion policies can enhance visibility into the consumption patterns of consumers. Forecasting models that predict consumer demand more accurately can address demand variability effectively.
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Effectively Managing Demand Variability in CPG Industry - With focus on CPG manufacturer