Demand planners shouldn't do this

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  • Опубликовано: 12 сен 2024
  • Demand planners are not computers.
    So don't ask them to do what computers should do.
    They shouldn't spend a minute finetuning or selecting forecasting models.
    Let an algorithm do this. It will be faster and more reliable.
    I don't clean outliers, and so should you;
    If you have outliers,
    - Invest more time in (automated) data cleaning and processing.
    - Include more business drivers in your forecasting engine (promotions, shortages, price changes)
    - If you really have some exceptional periods (covid), bypass them - don't correct them.
    Finally, if your demand planners worry (or track) about current and future shortages, it means that you are forecasting sales and not demand. This will result in a vicious circle: shortages will lead to 0 forecasts, which will lead to 0 supply orders, resulting in more shortages!
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    If you want to learn more about demand and inventory planning, I predict you'll enjoy my mailing list: mailchi.mp/sup....
    My 3 books: www.amazon.com...
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