Archive
Question on Demand Planning & Forecasting
I was sent a message on LinkedIn from a gentleman requesting my input on their planning methods. As I was writing my response, I thought that it would be of benefit to other people, so I am posting the question and response here. Click “read more” below to read the entire question and response.
Question:
We both share the Supply Chain group on linkedin.I understand you have experience in Demand Planning & Forecasting. We at the IBF – Institute of Business Forecasting & Planning are currently researching what companies are doing to manage their inventory, reduce operating costs, improve customer retention & fulfillment in this volatile market? Especially, when history can no longer be an indication of future outcome. It would be great if you could share some thoughts on what your company is doing to remain competitive and preserve cash. Furthermore, do you feel executives are recognizing the important of demand planning & forecasting, more so now than ever before? And if so, are they only looking for technology as the quick fix, or improving processes from your viewpoint? Of course, we see pursuing technology without having proper processes in place to be dangerous.
So far, we’re seeing companies paying more attention to forecasting for items with higher value only, and doing it at shorter interval. We’re also seeing companies truly leveraging their S&OP processes, as well as their POS and Syndicated data to make better planning decisions from having a clearer picture of consumer behavior at any given time.
DTV Blunders
The US Government has embarked upon a mission to convert all US TV broadcast from analog to digital. For more information on the history and details on the conversion go to Wikipedia or to the Government DTV site. Here is my analysis.
Egan Dry Erase Markers
At USG we have many white boards in our conference rooms, and most of them are accompanied by Egan brand dry erase markers. Every time someone starts to use one of the markers, I get rather agitated; the odor of the markers is nearly unbearable. This is not just my thought, it is a belief that I share with others; I have witnessed my boss commenting on how badly the markers smell as he crinkles his nose. The strangest thing is, my coworkers who use the markers use them like they have no idea they smell so badly.
I decided to take things into my own hands, as I usually do, and I sent a letter to the manufacturer of the markers. It appears as though they couldn’t care less how badly they smell, as long as they produce “maximum satisfaction” when erasing. Now, I don’t know what sort of person only rates a marker based on its erasability, or what person only asked the focus group to rate its “erasability” and not anything else, but the ENTIRE experience of using the marker should be factored into the “satisfaction”. I’ll tell you this; I will not be investing in Egan if their thought process is so convoluted.
Here is the e-mail chain:
Vanguard and Wachovia’s Erroneous Decision
The other week I wanted to set up a direct deposit into my Roth IRA through work, so that a portion of every paycheck went into my Roth IRA. The experience was interesting, to say the least. It got me thinking… Why do large corporations make erroneous decisions?
Marriott Letter
I usually put up my “Privacy Please” hanger on my door handle at the hotels I stay at because they always want to clean when I’m still sleeping and because I really don’t need my room cleaned every day. When I have that sign up, most hotels will slip something under the door telling me that I can call the front desk and ask them to clean the room if I want it cleaned later in the day. This hotel here in Norfolk I blogged about the other day has this letter that has been copied so many times, it’s getting to the point that they need to replace it. I think it’s very unprofessional. Take a look at it, this scan looks EXACTLY like it does in person:
ED HAYES 