New Perspectives on the Value of Demand Sensing

This is an excerpt of the original article. It was written for the May-June 2014 edition of Supply Chain Management Review. The full article is available to current subscribers.

May-June 2014

Getting the most from Sales and Operations Planning is a combination of people, processes, and technology. The Red Wing Shoe Company details the steps it took to improve S&OP processes, slash its S&OP planning efforts by 50 percent, and align manufacturing with sales—all while growing its business.

Browse this issue archive.

Already a subscriber? Access full edition now.

Need Help?

Contact customer service

847-559-7581   More options

Not a subscriber? Start your magazine subscription.

Last holiday season, many retailers and their suppliers were shocked by 11th hour shifts in demand, with much of the surprise coming from a surge in e-commerce orders.

As recently as a decade ago, it wasn’t unusual for businesses to be hit with much larger or smaller orders than they had been expecting—and for those orders to arrive earlier or later than anticipated. But since then, the discipline of forecasting has improved markedly, with mathematically tractable models providing more useful predictions of demand. So why, in the first decade of the 21st century, are businesses still surprised—and hobbled—by sharp shifts in demand?

The truth is that lack of accuracy still plagues forecasting efforts. A precision forecast of demand is essential for the successful utilization of advanced planning tools. Until recently, demand forecasting primarily involved analyzing historical information using quantitative and qualitative methods. But in categories such as e-commerce, the historical data is too thin to be truly useful.

This complete article is available to subscribers only. Click on Log In Now at the top of this article for full access. Or, Start your PLUS+ subscription for instant access.

Not ready to subscribe, but need this article?
Buy the complete article now. Only $20.00. Instant PDF Download.
Access the complete issue of Supply Chain Management Review magazine featuring
this article including every word, chart and table exactly as it appeared in the magazine.

SC
MR