The tool gives demand planners an early and accurate view of future sales plans, booked orders and demand forecasts, allowing rapid and effective decision-making.
Companies can typically expect a 15-20% improvement in forecast accuracy. Research has shown that this typically results in:
- A 15% reduction in inventory
- A 17% improvement in perfect order performance
- A 35% shorter cash-to-cash cycle
The impact on a company's financial position is significant, with few other planning initiatives being able to yield equivalent returns.
Demand Planning for every-increasing complexities
With ever-increasing complexity being introduced to business operations by shorter product life cycles, expanding regional and global customer bases and an explosion of new products and alternative brands, advanced demand management becomes a necessity for many businesses.
In addition, the way business is done is also changing. Manufacturers, distributors, wholesalers and retailers need to constantly collaborate with their suppliers to ensure they are synchronised with demand variations caused by promotional plans and new product introductions.
Hence, the need for an accurate and up-to-date demand forecast is greater than ever. The challenge companies face is to design an effective multi-dimensional model that handles the complexity but is still easy to understand, operate and maintain. Lexian Demand Planner has been designed to meet these requirements.
LDP uses multi-level forecasting techniques that dynamically calculates seasonality and trends by intelligently selecting the right algorithm for each product level and aggregating or disaggregating the results up or down the product, geographical and / or channel hierarchy. LDP allows the user to incorporate causal factors such as ‘Hours of Sunlight’ or ‘mm of rain’ when generating the forecast
LDP has a highly effective forecast accuracy and alerts function that ensures that focus is directed to the areas that will make the biggest difference to the business. LDP includes a concept unique to sales forecasting software, called Data Streaming. This allows the forecast to be viewed and managed from any angle, for example:
- Marketing can view and manage the forecast by channel
- Sales can manage and view the forecast and budget by account manager
- Finance can manage and view the forecast by cost and revenue
- Production can manage and view the forecast by product
- Logistics can manage and view the forecast by inventory type
LDP provides one single view of the truth, ensuring that all users look at the same numbers from different angles to enable them to making sense of what they see and turn data into decision making information. LDP provides the most flexible screen layouts and security settings available in sales forecasting software.
Users can be provided with any level of access to functionality, products, families and models. This makes demand management collaboration a reality, giving you confidence that all users, including customers and suppliers, can view and edit only what is relevant to them.
LDP allows for Profiling which lets the user set up any number of events, promotion types, or demand profiles that can be applied to individual items or families of products. Profiles can be viewed in libraries that allow the user to apply them with ease. This allows the system can learn from past events and enhance future forecasts.
LDP interfaces with in-house Host or ERP systems via a simple flat file transfer, an ETL direct database interface tool or our SAP Certified Interface Tool.