Demand Sensing based Forecasting and Replenishment – a better forecast and more responsive supply chain for superior customer service at lower cost
The restaurant and foodservice supply chain is complex, critical and very time sensitive. There is little tolerance for error. On top of that, demand is highly variable, making it difficult to plan and stick to a plan.
In order to combat this, most companies focus solely on improving their forecast accuracy. That’s a mistake. While a more accurate forecast is definitely useful, there’s a better way to meet shifting demand and to control costs.
Real time visibility, coupled with demand-based forecasting, will help create a more efficient and agile supply chain.Lizette Gonzalez, Vice President, Global Planning and Forecasting, BBI
Demand Sensing Based Forecasting for Restaurants and Foodservice
Rather than exclusively focusing on forecast accuracy, you’re better off taking a good forecast and using a demand sensing engine to fine tune the forecast using the most recent point of sale (POS) transactions. If there’s a surge in demand for a store or group of stores, the demand sensing engine can quickly respond with a forecast adjustment in time to impact replenishment actions.
Demand Sensing is a powerful tool that enables companies to incorporate detailed short-term demand data into their forecasts to reduce their forecast error by up to 50%, reduce safety stock inventory by up to 80%, and optimally deploy available inventory whether it’s in transit, shipped from the DC, cross docked, flowed through or shipped direct from the producer or supplier.
Restaurant and Store Specific Replenishment
Typical replenishment solutions lack precision. Most of them simply push the same amount of inventory out to stores without taking into account that the item sales vary significantly across the stores even if their total sales are similar. This “peanut butter” approach actually creates excess inventory, waste and lost sales.
One Network’s replenishment solution looks at store or restaurant point-of-sale data, and plans replenishment at each location based on their actual sales and trends. This means stores and restaurants get exactly what they need, and only what they need. Supply is precisely matched to demand, minimizing excess inventory and costly waste.
Accurate and Automated Deployment
One Network’s Deployment service is a sophisticated engine which uses real time demand and supply conditions to drive deployment orders.
It automatically generates and executes replenishment orders based on actual demand, actual days-of-supply, and safety stock at all forward facility inventory locations. It automatically aggregates deployment orders into truck load orders, and selects the optimal lane and load given lead times, pallet capacity, and financial impact.
It provides real time views of current inventory at all facilities, alerts to current or potential stock outs, and on-demand visibility of customer sales, production orders, and order states.
Faster, Fresher Foodservice Supply Chain at Lower Cost
One Network’s Real Time Value Network provides powerful, visibility, collaboration tools, and automation, to sense and fulfill demand faster and more efficiently than ever. Companies on the Real Time Value Network have gained total visibility into their supply chains and slashed their replenishment times by up to 66%, in some cases from days to just a matter of hours.