Twenty-three lacklustre, backwater, trends from yester-year still remain, so let’s get back to it. The sooner we get through these, the sooner we get back to modern times.
So why do so many historians keep pegging increased accuracy as a future trend, and helping poor LOLCat regress to past lives? There are a number of reasons, but among the top three today are:
- Hyper-competitive markets make demand planning difficult
because a one week’s difference in release date due to an unexpected delay can result in a competitor beating you to market and siphoning off a significant portion of your expected market share for the product
- lack of long-term data in short lifecycle product categories makes trending hard
which makes it even harder to predict not only when a product instance is going to reach end of useful (sales) life but when the next iteration is going to bomb because the product has reached end of life and needs to be retired
- most tools are still using outdated inventory models
because the initial versions were created twenty, thirty, and even forty years ago and it’s just not possible to force fit new, complex, innovative inventory costing and projection models into them
So what do you do?
As per above, Procurement not only needs to identify suppliers who can add value at little or no incremental cost but needs to identify suppliers who can help it get an edge in these markets. It needs to move to JIT (Just in Time) production and distribution to the extent possible, track product and consumer trends carefully, and adapt as needed.
Lack of Long-Term Data in Short Lifecycle Product Categories
It needs to collect as much market data as it can from analyst and trade bureaus to identify global trends, and analyze all of the data it has on past and current products to predict life-cycle trends that are in-line with current market conditions.
Outdated Inventory & Forecasting Models
It needs to update its inventory management and demand planning tools ASAP to not only plan with more data, more resolution, and more options, but support forecasting under different conditions.