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Demand Planning Intelligence Consortium
Forecast accuracy directly influences your working capital requirements, inventory strategy, safety stock levels, and overall operating costs. It also influences customer service levels and executive confidence. In other words, it’s kind of a big deal.
Chainalytics’ Demand Planning Intelligence Consortium (DPIC) analyzes the underlying drivers of demand uncertainty to help companies identify areas to improve their forecasting and demand planning processes — ultimately creating a competitive advantage. While 100% forecast accuracy is unrealistic, its important to understand exactly where uncertainty exists in order to positively impact profitability and customer satisfaction.
How DPIC works
Using a proprietary model-based benchmarking approach based on item-location level, final consensus forecast data, and transactional shipment data, Chainalytics maintains forecast accuracy and bias models which quantitatively capture the combined effect of specific demand, product, and network characteristics. Each company’s actual data is normalized and then benchmarked against these models to understand exactly where more accurate forecast predictions are achievable. With the help of data-visualizations and interactive analytical dashboards, DPIC also communicates these opportunities in simple to understand terms which can be shared beyond your demand planning team.
DPIC enables organizations globally to:
- Set realistic accuracy and bias targets for each item-location by understanding and setting achievable goals at various aggregations given the predictability of your portfolio
- Classify sources of error and volatility to understand just how effective you are at managing variability relative to your peers in order to implement corrective action
- Plan intelligently for your portfolio mix using advanced segmentation to expose trends in order patterns, promotional effects, economic cycles, seasonality, and NPI launches
- Identify and prioritize quick-win opportunities by business unit, brand, item-network, item-DC, geography, and more
- Understand proven best practices commonly employed by market leaders and process trends discussed at annual forums
- Benchmark performance and quantify your forecastability before and after upgrades, implementations and/or improvement initiatives
For more information about joining Chainalytics’ Demand Planning Intelligence Consortium or to schedule a live demo, please email us at dpic@chainalytics.com.
