In terms of integrated demand planning, there are two different kinds of forecasting typically in practice at manufacturing, distribution and retail businesses: accurate forecasting and traditional forecasting.
Dependable, accurate forecasting, or integrated demand planning, gives a business the ability to plan all upstream manufacturing and distribution activities and, ultimately, save money with reliable purchasing and production plans. The goal of an integrated demand plan is to have all independent entities in a value chain collaborate on a plan that is based on demand information from all channels.
Traditional forecasting focuses on capacity planning in an effort to maximize return on labor and assets. The result is large finished-goods inventories that ultimately increase the cost of production. In lean environments, production and customer demand are synchronized to improve efficient use of materials, resources and capacity.
The Revere Group helps our clients collaborate with their partners to improve integrated demand planning processes to ensure downstream operational efficiencies. The resulting demand-driven organizations experience higher service levels and sales, more satisfied customers, and lower inventory and distribution costs.