Collaborative Planning: Win Together or Die Alone

    Interpreting market data is the vital work for which demand planning must ensure, it greatly improves responsiveness and positively impacts consumers, inventory levels, marketing team strategies and consequently income. However, this task is not easy to do, because today’s consumer wants the same experience, availability and assortment online, in stores and through different channels.

    Additionally, companies must understand that the consumer is unique, that is, a group of people between 25 and 30 years cannot be considered to have a purchase pattern, even if they fit in the same age range, which is known today as True Demand.

    Notice that your company is part of an integrated value chain

    Organizations that thrive have learned that they are part of an integrated value chain and that success comes from collaboration in capturing, managing, and treating data. For some experts, this is a formalized process that allows companies to reduce the whip effect present in demand planning and, on the contrary, favors the joint work with business partners in favor of collaboration planning and forecast replenishment (CPFR) in a structured way. It also promotes the satisfaction of customer needs through the efficient use of the skills and knowledge of suppliers and other business partners.

    6 steps to achieve integrated collaboration

    To achieve synergy between common areas that business partners have such as logistics, operations and demand planning, there are six key aspects to consider (see image 1):

    1. Develop a front-end agreement and purpose
    2. Build a forecast collaboratively
    3. Structure a collaboration order plan
    4. Define order generation and inventory plan
    5. Ensuring the fulfillment of the order
    6. Assess the collaborative performance of partners


    In short, it consists of winning together or dying alone. Even if partners do not implement a formal CPFR process, any trusted environment and collaborative interaction can greatly benefit each of the business partners. The companies that are prospering today and those that are striving to keep up with the market, do so by working together towards a team vision in the collaboration of supply and demand plans.