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5 Tips to Manage Gaps in Consensus Demand Planning and Production Planning for Seasonal SKUs


Managing seasonal SKUs can be challenging for businesses. Companies need to balance customer demand and inventory waste to maximize revenue. This blog will explore how to manage differences in consensus demand planning and production planning effectively. By following these strategies, businesses can improve their forecasting accuracy and align their teams to meet customer demand.




Accurate Forecasting:


Accurate forecasting is critical to effective demand planning and production planning. By analyzing past sales trends and market conditions, companies can forecast demand accurately. Statistical forecasting tools such as SkuCaster can automate this process and reduce errors. However, it is important to supplement these tools with human expertise to account for factors that are not captured by the models.




Align Your Teams:


Collaboration between different teams is essential for consensus demand planning and production planning. The demand planning team needs to work closely with sales, marketing, and customer service to ensure that their forecasts align with customer demand. Similarly, the production planning team needs to work closely with the supply chain and manufacturing teams to ensure that production aligns with demand.




Set Production Buffer:


Setting a production buffer is crucial to meet customer demand without incurring stockouts. The production buffer is the minimum level of inventory required to meet customer demand during the seasonal period, and a margin for unexpected demand should be kept. By setting production buffer based on expected demand, businesses can manage differences between consensus demand planning and production planning effectively.




Establish Alerting System:


Even with accurate forecasting and consensus demand planning, unexpected fluctuations in demand can occur. An alerting system can help businesses monitor changes in demand and production levels in real-time. The system can send alerts to relevant teams to adjust their planning and ensure that production aligns with demand.




Review and Adjust:


Managing differences in consensus demand planning and production planning for seasonal SKUs requires continuous review and adjustment. Regular analysis of data helps identify outliers, adjust forecasts, and improve processes. Reviewing production buffer and alerting systems ensures that they align with current needs.




Conclusion:


In conclusion, managing seasonal SKUs requires effective demand planning and production planning. Accurate forecasting, team alignment, production buffer, alerting systems, and regular review and adjustment are key strategies to managing differences in consensus demand planning and production planning. By following these steps, businesses can meet customer demand, reduce inventory waste, and maximize revenue. Please share your thoughts by commenting below if you found this blog helpful or if you have any different approaches to managing seasonal SKUs.




We hope this blog has given you insights into managing differences in consensus demand planning and production planning for seasonal SKUs. If you found this blog helpful or disagree with our approach, we'd love to hear from you! Please leave a comment below with your thoughts, feedback, and experiences related to managing seasonal SKUs.

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