Creating demand forecasts for large product mix is an onerous task. Organizations, that plan demand for a large number of products across multiple customer locations, find it difficult to focus their efforts on a few product-customer combinations that truly require collaboration.

There are products that have steady coherence to statistical forecasts and their forecasts can simply be trusted. Then there are products that are slow moving or low margin where spending precious collaboration time is unnecessary. The challenge however is to identify these products quickly and put them into separate policy buckets.

This is where a Demand Policy based Product Segmentation comes to rescue and helps you generate more impact for the efforts invested on collaboration. This Demand Policy app by Valizant helps you to classify your product mix into three segments and assign an appropriate planning policy to each set of items. The segments are:

1. Collaboration - Items with high demand volatility and high revenue impact.

2. Forecast - Items with consistent demand pattern and high revenue impact.

3. Stock - Items that are either inexpensive or slow moving or low revenue. 

It is important to review product mix periodically since demand patterns and market conditions change over time. Since the rules of segmentation are configurable and reclassification can be performed by the click of a button, this app becomes a very convenient tool for demand planners and product managers who own a very large product mix.

Define a clear product segmentation policy based on revenue, cost, demand volatility and product lifecycle.
Run Demand Policy on product mix and review item count, cost and revenue proportions for each segment.
Override the planning group determined by demand policy based on strategic insight, competitive requirements or product lifecycle stages.
Review cost and revenue contributions of items in different planning segments by market regions.

Information

App Last Updated

March 24th, 2017

Size

18.1 MB

Language

English

App stats

Modules

20

Roles

1

Formulas

105

Reports

5

Complexity

Intermediate

Why Anaplan for Product Segmentation and Demand Policy?

Take charge of your Demand Plan. Narrow down the list of collaboration planning items and direct everyone’s efforts on those few items. Generate more impact for the efforts invested on collaboration. Simplify the planning process by reducing unnecessary review meetings.

New product introductions, market expansion goals and competitive strategy play a big role in Demand Planning apart from Revenue and Margins. Incorporate the parameters that are significant to your business in a comprehensive demand policy that is also highly executable.

Set ground rules for classifying all your catalog items into collaborative planning, forecast driven planning and stocking policy based planning. Use Demand Volatility, Revenue, Cost, and Lifecycle stage as parameters to determine appropriate policy. Make the policy visible to Planners.

Review your product mix quarterly or once in every 6 months, to factor in changing market conditions. This simple to configure and easy to use app will make it possible for you to refresh and realign even very large product catalogs.

Take charge of your Demand Plan. Narrow down the list of collaboration planning items and direct everyone’s efforts on those few items. Generate more impact for the efforts invested on collaboration. Simplify the planning process by reducing unnecessary review meetings.New product introductions, market expansion goals and competitive strategy play a big role in Demand Planning apart from Revenue and Margins. Incorporate the parameters that are significant to your business in a comprehensive demand policy that is also highly executable.