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Collaboratively Build and Maintain Demand Forecasts Across Functional and Regional Teams

By LLamasoft Editorial Team  January 15, 2016

No matter your level of maturity in formalizing and structuring your demand and supply processes, the need to generate a forecast is constant. Forecast accuracy can yield the greatest equivalent returns on a company’s financials than any other planning activity, yet many businesses still struggle with multiple versions of a forecast for multiple purposes: financial and budget planning, incentive management, procurement planning, warehouse sizing or production planning.

Case Example: Carnival Improves Forecast Accuracy with Optimiza

Taking cruises all around the world on luxury liners that can accommodate up to 3,500 passengers feels like a dream holiday. However, when you take into account the challenge of feeding, entertaining, and accommodating this number of people for several days and the logistical complexity induced by the diversity of ships, routes, times, profiles of passengers, products, as well as anticipating and planning the needs of these ships before each port of call can easily turn into a headache and one that requires accurate forecasting and contingency planning. To help the planners of their ships, Carnival UK decided to optimize its complex forecast planning using LLamasoft’s demand and forecasting tool. Many intricate considerations had to be incorporated such as analysis of timelines, the usage patterns of consumables, restocking with local foodstuffs, purchases from bars, and demand for fresh linen and towels.  Currently, their forecasts includes 4,000 references by ship which is 95 percent of the volume and value. The forecast quality is excellent and additional work on capacity management and safety stocks will improve the results even further.

Supply Chain Demand Planning and Forecasting Software

Forecast accuracy can yield a greater return on a company’s financials than any other planning activity. Organizations need forecasts to help with financial and budget planning, incentive management, procurement planning, warehouse sizing, or production planning.

Optimiza supply chain planning software is used by companies world-wide to maximize service levels, increase customer loyalty and protect margins. They do this by aligning demand and supply processes and building, managing and executing a dynamic, agile and responsive demand and replenishment plan. Formalizing the demand and inventory management processes includes defining KPIs and alerts for up-to-the-moment visibility.

  • Dynamic multi-level forecasting by product, geographic and channel hierarchies.
  • Promotions management including “in promotion” forecasting tuning.
  • Product life cycle management: phase in and phase out.
  • Demand switching between sources, brands or channels.
  • Forecast accuracy highlighting the most significant win to the business.

Carnival Case Study link – https://www.llamasoft.com/carnival-forecast-accuracy-optimiza/