The Datacor Blog

The Importance of Demand Planning in an ERP for the Janitorial Industry

Posted by Sean O'Donnell on August 31, 2017 at 10:00 AM

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Today’s dynamically changing business environment calls for organizations to be agile and quick in responding to market changes to exceed customer expectations. Utilizing Demand Planning is an integral part of this process. A successful demand planning system requires a credible, flexible and accurate forecast. A good demand planning system will enhance the accuracy of revenue predictions, keep your stock levels in line with the increase and decrease in demand, and improve your profitability.

Important components of demand planning include:

  • Analyzing statistical predictions
  • Incorporating historical sales data
  • Incorporating customer activity via CRM
  • Managing and massaging forecasts in the ERP
  • Accurate Scheduling in the Supply Chain
  • Flexibility and agility

Forecasting and CRM

Customer Relationship Management (CRM) is a term that refers to strategies, practices, and technologies that organizations use to evaluate and manage customer dealings and data throughout the consumer lifecycle, with the aim of improving business relationships with clients, helping in customer retention and boosting sales growth.

CRM started as a contact management system but has evolved over the years. Even though it was never originally developed for forecasting, it is often used for forecasting. Frontline real-time knowledge of activity in the market is a critical component to an accurate forecast. Using CRM to increase forecast accuracy can greatly improve your business’s demand planning and could substantially improve delivery performance.

Demand Planning & ERP Software

One of the many functions of Enterprise Resource Planning (ERP) is to manage demand and supply within the business. ERP software that features advanced demand planning can help janitorial and sanitary supply businesses optimize inventory levels in order to guarantee a timely delivery to customers. Let’s take a look at 3 advantages of incorporating demand planning in your business’s ERP software.

1. Demand Forecasts

Knowing the volume of the orders you will receive and the time at which you will receive them can help Janitorial and cleaning supply companies plan accordingly. Incorporating historical sales, the current sales pipeline and opportunities from your CRM into the overall ERP forecast increases the accuracy and dependability of your production and buying levels.

2. Adequate Cash Flow

Knowing the peaks and valleys in your demand can help your business manage cash flow. Money tied up in inventory reduces the opportunities to expand in other parts of the business, such as sales and marketing.

3. Efficient supply chain scheduling

An efficient supply chain schedule will optimize your inventory levels. Overstocking takes up space in the warehouse, increases obsolete inventory, and ties up cash. Under stocking alienates customers, creates emergency production runs and last-minute buying which results in increased costs and lost business.

Conclusion

ERP software with demand planning and a CRM with real-time forecasting can do a great deal to keep your business running smoothly. It ensures optimized inventory levels, which helps you save money and time, improves customer loyalty, and reduces general overhead expenses. For further information regarding the best ERP solution for the Janitorial and Sanitary supply industry, contact Datacor today!

Topics: ERP, CRM, Janitorial & Sanitary Supply

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