DemandPlanningKPI’sDemandPlanningKPI’s

Demand Planning KPI’s

 Partofthisprocessistorecognizeakeyperformanceindicator(KPI).Eachcompanyhasspecificgoals,soitisimportanttoselectthebestKPIsforyourneeds.Realizethatthismayinvolvetrialanderror.Partofthisprocessistorecognizeakeyperformanceindicator(KPI).Eachcompanyhasspecificgoals,soitisimportanttoselectthebestKPIsforyourneeds.Realizethatthismayinvolvetrialanderror.
Part of this process is to recognize a key performance indicator (KPI). Each company has specific goals, so it is important to select the best KPIs for your needs. Realize that this may involve trial and error.
Since these are real-time and based on data (rather than surmise), management is better able to forecast the demand for their products and keep their ordering, manufacturing, and product on track.
Then you can adjust your plans accordingly.
Errors
Those indications that the market is changing.
Signals
Pareto Principle
This is the theory that 20% of all causes impact 80% of the outcomes. While not proven mathematically, it is a good rule of thumb in various industries.
Actual Sales
It is an indicator, like many of the above, but used in combination with other elements, it can swing the balance on critical decisions.
Computer Assistance
There are also professionals who will provide the expertise you need to deal with these decisions. Think of forecasting like ...
...one of those game boards where you drop a marble from the top row and you watch it bounce back and forth and left and right.
You try to guess which column it will finally drop through. Using KPIs you can track changes as they occur and watch for trends.
Because they are displayed on dashboards, the information is able to be immediately applied without stopping for data ...
...entry or calculations. There are those that are basic and general and can be used for almost any type of company.
Some can be customized and some organizations have modified original programs to detailed planning for their own enterprise. Choosing the best KPI for your needs can be tricky.