Planning and Demand Forecasting –

The Key to an Efficient Supply Chain

|ESDS SOFTWARE SOLUTION PVT. LTD.|

Present Scenario for RequisitionsSub Title

Customer (NOC, Pre Sales, Sales, Stores, Projects)

PURCHASER

Requisition via Mail, After generation of Demand

Requirement Generation after Demand:1. Weaker Negotiations due to Delivery Timeline Constraint.2. Cost Benefits cannot be availed due to time pressure.3. Restricted ability to check the markets for other options.4. Cannot negotiate on our business terms as well thus suffering an Impact on Delivery and Finance.5. Cannot purchase the Materials from OEM’s due to lead time constraint, thus need to purchase the same from

Partner or Local Vendors thus arising a question of authenticity of the material.6. High Risk of not meeting the Delivery Timelines and Approved Budget.

Planning and Demand Forecasting – Explained

Customer (NOC, Pre Sales, Sales, Stores, Projects)

PURCHASER

Plan

Leads / Opportunities which are almost confirmed

Chalking out of

requirement in

Advance

Cross Checking of the requirement

with concerned department for

Demand Purchase

Analyzing the usage and predicting the next requirement

OEM’s

Purchaser Communicates the approximate demand to the OEM’s and decides on signing an agreement/rate contract with the OEM’s

Planning and Demand Forecasting – Benefits

1. Lead time delays, failure of Delivery Timelines, effect on projects/business will be reduced to minimal thus contributing in overall productivity and good relationship with EU.

2. Will let the Purchaser have more control over the transactions, a strong stand during negotiations thus allowing him to get the maximum good for the company.

3. Targeted working will help eradicate unexpected delays, more profitability and a focused plan thus proving beneficial over a period of time.

4. Price Benefits, Payment Term benefits, Delivery benefits thus can be availed.5. Demand Planning and Budgeting will assist by helping the organization cut down

additional expenditure like operational costs, extra costs due to manual error thus optimizing the amount spent on internal requirements.

6. Owing to available time for Delivery, material can be ordered through OEM’s thus increasing reliability.

7. Potential Suppliers will intern help in bringing in more Business by means of Vendor Lead Generation.

“A PENNY SAVED IS A PENNY EARNED”

- Benjamin Franklin.

Thank You