Become a Demand Driven Supply Chain

Improve Forecast Accuracy

Improving Forecasts Within SAP

Becoming truly demand-driven is core to the journey of Business Maturity® and evolving into a stream-lined, data-driven, agile enterprise.  You not only have to trust the demand, but you also have to listen to it and produce and buy to the actual demand, even if it is not perfect (and by the way it never is).  Only when the whole organization believes and works together to meet demand do you see a truly agile intelligent organization.

Without specific prerequisites noted in this paper, everything else will fall flat, and SAP becomes a siloed data vehicle instead of the transformative business tool it is meant to be. The ultimate goal is turning data into insights, and insights into action.

You  might  think  SAP  is  one-size-fits  all,  or  that  your  company  is  all  one  production  type,  but  most companies are a mixture. This requires setting up planning strategies  for each product line, or even better,  each  SKU.  To  run  optimally,  you must  have  the  right  stocking  strategy  and  replenishment  model  for  each  product.  This  dictates  what planning strategy  to  use,  and  how  the  forecast  and  customer order demand signals are used in the system. SAP offers a myriad of options to meet those varying needs. If this isn’t leveraged, forecast data will not be trusted nor used as required, which can lead to broad ramifications to the business.

Once you are operating as a demand-driven business, using and improving forecasts within SAP, setting up the correct planning strategies, you will reap the rewards of agile, efficient production and be well on your way to becoming a digital supply chain.

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Business Guide to S/4HANA vs. ECC's MRP & Exception Management

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