Using Demand Planning for Lean Manufacturing

One area that a manufacturer can focus on to create more organization and save money is demand planning. As long as the demand planning is accurate, the rest of the organization’s functions can run smoothly. With good demand planning, a company can scale back on spending, know how many employees will be needed on a project and plan for shipping charges.

With a good ERP system, demand planning is made easy. Using predictive analytics, you’re able to save time and money within the business. Through historical data, predictive analytics and less waste a business can become a demand planning pro.

Historical Data

ERP systems have great data collection and storage, giving an organization the ability to pull in and use past data to help in the future. Cross referencing client habit or seasonal trends will give the business insight know what is coming. Especially when it comes to client habit, it’s important to never run out of an item. If you don’t have it, they will find someone who does. Having this kind of information at your fingertips puts you above the competition.

Predictive Analysis

Putting that historical data to work in the ERP system makes best-in-class predictive analytics. Your ERP system can pull in, not just historical data, but also present productivity levels. This will give the business insight into what needs to be made, how much of it needs to be made and where it will need to be sent. Further, a good ERP system can take into account revenue flow and predicted future growth to give an idea of where the company is headed.

Less Waste

Using demand planning in this way, the business will know exactly what is needed, leading to less waste. Especially in manufacturing sectors that have expiration dates on their product, having this ability to produce the least amount of product that will take up space on the floor is ideal. Cutting down on waste leads to cutting down on costs. It also gives employees more time to focus on other important tasks.

Being able to foresee the future of your business through demand planning saves time and money. No more wasted products or wasted employee time. Once those costs are freed up, the business can focus on other important factors that play into company growth. Demand planning is one of the easiest ways to achieve lean manufacturing in your company.

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