Limitations of demand planning software ism

Post on 12-Jul-2015

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Transcript of Limitations of demand planning software ism

LIMITATIONS OF DEMAND PLANNING SOFTWARE

1. Failed to communicate with existing systems.

2. Could not analyze large amount of product info.

Accurately.

3. Demand application & its planner stored info. In varied

formats which created problems in smooth integration.

4. Due to heavy customerization& huge no. of products

software became very slow and became vulnerable to

crashes.

5. Software use statistical models like regression

which requires clean data but nike provides only

estmates of actual sales.

6. Software was based on assumption that what

was true yesterday will be true tommorrow.

MEASURES TO OVERCOME DEMAND FORCASTING

1. Nike should hold review meetings to discuss forcast that

turned out to be errorneous.

2. Nike should setup realistic goals.

3. Demand forcasting should only be used as a means for

decision making.

4. Make sure that it has right business model to make

forcasting useful.

5. Nike should try to do consensus planning rather than

demand planning.