Striking The Right Balance Between Supply And Demand

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How well do you know your customers’ interests and how well can you match their demands?  Customer buying habits, the economy, and even seasonal demand (like upcoming holiday shopping) can have major influences on your inventory, sales, and customer satisfaction.  What can you do to strike the right balance?

Before you can even begin to contemplate what your customers may want next, you need to be able to access historical sales, current sales, and related data.  Disparate software solutions and elaborate spreadsheets cannot hold the volume or the type of data that you need to make accurate, reliable supply and demand decisions.  When your sales, supply chain, inventory management, manufacturing, and distribution teams are all working independently of each other, you end up with pieces of a puzzle.  In order to put those pieces together, you need an integrated business management solution, also known as an enterprise resource planning (ERP) solution

An integrated solution organizes all of your business data into a single repository that can be accessed by all the major players within your business.  Once all of your data is located in a single solution, the pieces neatly fall together so you can begin to see the big picture.  You can watch for trends in the most popular products and determine the products your customers are favoring.  Then you can schedule manufacturing or distribution operations to match those demands.  You can also dig deeper into your data and determine which products are sitting too long on the warehouse shelves.  Building up a little extra inventory can be helpful, especially when the inevitable supply chain interruption occurs.  However, if you aren’t keeping tabs on trends, you could end up with more products than customers are demanding, which can be an expensive mistake.

Striking the right balance between supply and demand requires access to reliable data about your internal operations and expected external factors, as well as your customer interests.  Weeding through spreadsheets to assemble meaningful information is time-consuming and fraught with mistakes.  A comprehensive, robust ERP solution can put all of the data you need at your fingertips.  You can put the pieces of the puzzle together to form a picture that meets your strategic goals and satisfies ever-changing customer demands.  Contact Socius for more information about striking the right balance between supply and demand by using a powerful ERP solution.

By Socius, Ohio Microsoft Dynamics GP Partner

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