Industries / Manufacturing

Demand Forecasting

With increasing competition, product proliferation and multichannel retailing, consumers have more choices than ever. Product commoditization and tough economic conditions have affected brand loyalty, and consumers are making decisions based on availability, selection and price. Accurate demand forecasting has become an imperative for manufacturers. Any shortages or excesses in inventory have a direct impact on profitability and customer satisfaction. 

Why SAS®?

A global supplier to the pharmaceutical industry uses SAS to:

  • Reduce air shipments by 26 percent (resulting in an annual savings of $633,330).
  • Lower inventory levels and associated inventory costs.
  • Reduce overseas market share losses.
  • Improve product lead times.

Manufacturing success stories


How SAS® Can Help 

Maintaining profitability requires generating consistent, accurate forecasts over time using an analytics-based solution. SAS approaches the problem by delivering software and services to help:

  • Get correct and complete data when you need it from any system in any format. Data management tools access all types of data, including downstream POS data and upstream supplier data, then automatically transform and cleanse the data to get it ready for analysis.
  • Generate accurate, demand-driven forecasts at any hierarchical level. Using a wide range of forecasting models within our patented forecast engine, you'll get a true picture of demand that relies not only on historical demand data, but also includes POS consumption data and market indicators such as price, promotions and weather.
  • Determine optimal demand-shaping actions. Via a user-friendly interface to industrial-strength SAS Analytics, you can test various scenarios and conduct what-if analyses to gauge the impact of changes in your marketing strategies or product mix on demand and profitability.
  • Measure forecast performance against KPIs. An interactive dashboard lets you monitor, track, alert and report forecast performance metrics.
  • Proactively drive S&OP processes. An advanced consensus forecasting-planner workbench delivers fully automated, statistically driven, weighted consensus forecasts along with workflow, allowing senior-level management to guide the S&OP process.
  • Seamlessly integrate robust forecasting capabilities with your planning environment. Web services allow you to invoke our patented forecasting engine directly from the SAP APO demand planning module, so you can improve the accuracy of your forecast without ever leaving the comfort of your familiar planning environment.
  • Share information companywide via a self-service Web interface. Users interact with and drill down through reports as needed.

How SAS® Is Different 

  • Comprehensive data integration. Because other forecasting systems do not have integrated data management and data cleansing capabilities, those forecasts will deteriorate over time as data quality erodes. SAS provides a complete portfolio of data integration capabilities to ensure data quality and integrity, enabling you to maintain forecast accuracy.
  • Complete integration. SAS integrates individual technology components within your existing IT infrastructure into a single, unified system - resulting in an information flow that transcends organizational silos, diverse computing platforms and niche tools.
  • What-if analyses. Maximize profitability with the ability to understand the financial impact of changes in product and marketing mix, enabling you to optimize supply/demand balance. 
  • The most comprehensive, accessible business intelligence capabilities. SAS offers an integrated business intelligence platform that provides consistent, accurate information based on a comprehensive view of the business - along with a suite of intuitive interfaces with self-service query and reporting capabilities. You'll spend less time looking for information and more time driving strategic decisions.
  • Tailored to fit your business. With other vendors you either change your processes to fit their solutions or spend lots of money reconfiguring their solutions to fit your processes – in effect, paying twice. SAS tailors the solution to fit your business like a glove, delivering ROI in six months or less.

Related Products and Solutions

SAS® Demand-Driven Forecasting

SAS Demand-Driven Forecasting drives the development of the consensus forecast in conjunction with the sales and operations planning (S&OP) process. Combining the power of automation, analytics and workflow, it generates the most unbiased and accurate consensus forecast on a large-scale basis.

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SAS® Forecasting for SAP APO

SAS Forecasting for SAP APO provides organizations ideal demand forecasting and planning by combining superior SAS forecasting with the strength of SAP Advanced Planning & Optimization (SAP APO) planning capabilities. By seamlessly integrating SAS’ award-winning analytics with the SAP APO Demand Planning module, the solution helps you enrich your demand planning process with powerful, yet easy-to-use forecasting functionality, thus transforming your organization from one that simply reacts to one that is proactive.

"SAS Forecasting for SAP APO enables an easier assessment and improvement of forecasting results for companies that have implemented SAP APO for Supply Chain Management. Whereas most companies only define demand profiles and forecasting algorithms in the initial implementation, with SAS, you can define them continually throughout the product and market life cycles, simplifying and continuously improving the forecasting process – leading to sustained success."

—Frode Huse Gjendem
Senior Executive, Supply Chain Practice
Accenture
 

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Call us at 1-800-727-0025 (US and Canada) or request more information.