How can you adjust your demand plan to respond to market changes?

Demand planning is a crucial process for food manufacturers, as it helps them align their production, inventory, and distribution with customer demand. However, demand can change rapidly due to various factors, such as seasonality, consumer preferences, market trends, promotions, and disruptions. How can you adjust your demand plan to respond to market changes effectively and efficiently? Here are some tips to help you.

1 Assess the impact

The first step is to assess the impact of the market changes on your demand plan. You need to identify the sources, magnitude, and duration of the changes, and how they affect your demand patterns, segments, and channels. You can use data analysis, market research, and feedback from customers and suppliers to gather relevant information. You also need to evaluate the risks and opportunities associated with the changes, and how they affect your business objectives and constraints.

Add your perspective

ATEEB AHSAN

Manufacturing Operations | Streamlining Operations | Continuous Improvement | ISO Certified | LSSBB (Certified Lean Six Sigma Black Belt) | FSSC (Food Safety System Certification)
Report contribution
To proactively respond to market shifts, establish a monitoring system. Swiftly identify demand pattern changes & confirm with stakeholders. Then, reassess the supply chain strategy, recalibrating the demand plan to align with confirmed market demands. Maintain a detailed demand plan modification history for precision & foresight. This record serves as a reference and aids in identifying recurring patterns. With a monitoring system, organizations anticipate changes, enabling proactive strategy adjustments. Synchronizing demand plans with market changes requires constant vigilance, stakeholder collaboration, & a proactive supply chain approach. Documenting & analyzing historical changes fortifies adaptive capabilities for navigating future.

Like

2 Revise your forecast

The next step is to revise your forecast based on the updated information and assumptions. You need to use appropriate forecasting methods and techniques, such as statistical models, qualitative inputs, and scenario analysis, to generate accurate and realistic demand projections. You also need to consider the uncertainty and variability of the market changes, and incorporate contingency plans and safety stocks to buffer against demand fluctuations. You should review and validate your forecast regularly, and communicate it to your stakeholders.

Add your perspective

Tareak Dahini

Chief Operating Officer at FlexPro Meals | Food Manufacturing | Operations & Growth Focused Leader
Report contribution
To adjust to market changes, ensure your demand plan remains flexible, integrating real-time data and collaborating closely with sales and marketing. Employ scenario planning to anticipate shifts, and maintain agile manufacturing practices. Inventory control is paramount, particularly for buffet-style operations, enabling you to meet sudden spikes in demand without compromising service quality.

Like

3 Adjust your supply plan

The third step is to adjust your supply plan according to your revised forecast. You need to balance your supply and demand, and optimize your production, inventory, and distribution levels. You need to consider the capacity, availability, and lead time of your resources, and coordinate with your suppliers and distributors to ensure timely and cost-effective delivery. You also need to monitor and control your supply performance, and identify and resolve any issues or gaps.

Add your perspective

4 Align your marketing plan

The fourth step is to align your marketing plan with your demand and supply plans. You need to align your marketing strategies, activities, and budgets with your demand segments, channels, and projections. You need to leverage your marketing mix, such as product, price, promotion, and place, to influence and stimulate customer demand. You also need to measure and evaluate your marketing effectiveness, and adjust your marketing plan as needed.

Add your perspective

5 Implement your action plan

The fifth step is to implement your action plan based on your demand, supply, and marketing plans. You need to execute your action plan in a timely and consistent manner, and ensure that your plans are aligned and integrated across your organization. You need to use appropriate tools and systems, such as ERP, CRM, and S&OP, to facilitate your plan implementation. You also need to track and report your plan progress, and compare it with your expected outcomes.

Add your perspective

6 Review and improve your process

The final step is to review and improve your demand planning process based on your plan results and feedback. You need to review your demand planning performance, and identify the strengths, weaknesses, opportunities, and threats of your process. You need to analyze the root causes of any deviations or errors in your plan, and implement corrective and preventive actions. You also need to seek continuous improvement, and apply best practices and lessons learned to your future demand planning.

Add your perspective

RAKSHANDA SAEED

Food Safety Auditor & Trainer II ISO 9001 II FSSC 22000 II BRC II Halal II Highfield Tutor II Highfield HACCP L4 II Highfield FS L4 II Retail Auditing II Quality Assurance ll Quality Control ll Production
Report contribution
To adjust your demand plan to market changes, you can: 1. Monitor market trends: Stay updated on market shifts, customer preferences, & competitor actions. 2. Analyze data: Use historical sales data, market research, & forecasting techniques to predict future demand. 3. Flexibility: Build flexibility into your demand plan to quickly adapt to changes in demand patterns or external factors. 4. Collaboration: Work closely with sales, marketing, & supply chain teams to gather insights & align strategies. 5. Scenario planning: Create multiple scenarios to anticipate different outcomes & develop contingency plans accordingly. 6. Continuous improvement: Regularly review & refine your demand planning processes to enhance accuracy & responsiveness.

Like

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

Add your perspective

How can you adjust your demand plan to respond to market changes?

1

2

3

4

5

6

7

1 Assess the impact

2 Revise your forecast

3 Adjust your supply plan

4 Align your marketing plan

5 Implement your action plan

6 Review and improve your process

7 Here’s what else to consider

Food Manufacturing

Rate this article

Thanks for your feedback

More articles on Food Manufacturing

More relevant reading

How can you adjust your demand plan to respond to market changes?

1

2

3

4

5

6

7

1 Assess the impact

2 Revise your forecast

3 Adjust your supply plan

4 Align your marketing plan

5 Implement your action plan

6 Review and improve your process

7 Here’s what else to consider

Food Manufacturing

Rate this article

Thanks for your feedback

Explore Other Skills