In today’s world, being a consumer has unlimited advantages. At any time, I can search, shop and purchase products on my smartphone or tablet. If I have any questions or concerns about the product, I can easily do a quick search online and ask my friends on social media for their feedback. After all, peer reviews are the most important. It’s easy to collect all the data I need in a matter of minutes. Sounds great, right? Maybe for the consumer, but for consumer products companies, it presents big challenges.
How can consumer products companies keep up with the changing consumer?
In the world of the “modern” consumer, expectations are high and when they want something, they want it fast, which puts pressure on consumer products companies’ supply chains. According to research by IDC, many companies have less than a 48 hour lead time with less than optimal capabilities, which makes it difficult to keep up with the increasing demand. So, how can they rise to the occasion?
With integrated business planning.
Integrated business planning: Helping companies understand demand
Integrated business planning enables all the planning functions of an entire organization align to both operational and functional performance goals. It spans the entire consumer products enterprise including supply chain along with marketing, sales, manufacturing, finance and more; however, coordinating between all these business areas can be a daunting task.
The good news? Consumer products companies can get help from sales and operating planning, which is a key enabler of integrated business planning. IDC research shows that even though this type of planning has been around for 25 years, it remains a top priority, and allows consumer products companies to come to a consensus view of demand.
And that’s not it.
Below are 4 benefits consumer products companies can see as a result of successful sales and operating planning based on research by IDC:
- Between 10% and 20% inventory reductions
- Between 15% and 25% faster time to market for NPDI
- Between 2% and 5% improvement in on-time, in-full deliveries
- Between 2% and 5% revenue gains
Sales and operating planning is key
By leveraging sales and operating planning as a key component of overall integrated business planning strategy, consumer products companies will have a greater understanding of what demand looks like and how to respond to it. However, one critical question remains: to what extent are critical stakeholders from different planning areas of the organization getting actively involved in helping build this view of demand?
The sooner all hands are on board, the sooner your consumer products company can start seeing the results.
For additional information about how sales and operation planning can help your consumer products company, explore these resources.
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