Understanding GNFR Demand Planning Impact Upon the Perfect Order & Delivery
Demand planning can be defined as understanding and planning for the resources needed by different companies. Typically, demand planning (or forecasting) refers to projecting customer demand for GFR (goods for resale) products, but in this case, we’re focusing on the demand that companies have for GNFR (goods not for resale).
In this blog, we are zeroing in on a retail enterprise’s projections of the demand they need for certain types of fixtures or other GNFR by understanding how many stores they are looking to open or remodel.
Ultimately, demand planning is planning effectively for the demands of everyone in the supply chain. As such, companies must implement a multistep process to ensure accuracy.
What Is Involved in Demand Planning for GNFR Projects?
There are a number of steps involved with the GNFR demand planning process:
- Management first announces how many new stores and remodels the organization will have for the given fiscal period. (There are a variety of reasons behind these decisions, and they are discussed in another post.)
- The architects/store designers then decide what, specifically, will go into each store based on store concept’s updated design and size.
- The store opening/remodeling schedule is then finalized.
- The organization’s procurement department then orders all items that are necessary for each store. During the ordering step, the procurement department considers the timing needed to make sure everything arrives just in time.
How Can Companies Improve GNFR Demand Planning for Projects?
Streamlining the demand-planning process involves some planning of its own, and there are several areas to investigate. One of those areas is estimated time frames. For any demand planning, an organization should have a specific grand opening date scheduled in advance. The buildout schedule’s timing can then be determined by going backward from the grand opening date.
Eliminating extraneous processes is another way to improve demand planning. Planning systems should be as simple and relevant as possible, involving the parties in the process that execute these systems. Investing in a planning system specifically for building/remodeling projects can help organizations consolidate all of the necessary information.
There are demand-planning tools available to help streamline these processes that will assist you in anticipating customer (customer refers to final purchaser [GFR] or management [GNFR]) needs effectively. In some cases, an organization may need to reorganize team members to run this. Despite the increases to payroll, organizations can look forward to a significant decrease in the overall procurement costs, as having a well-organized process can cut down on wasted time and resources they may otherwise incur. This payroll cost increase should be significantly less than the savings from a more efficient procurement department, thus increasing the bottom line substantially.
How Does GNFR Demand Planning Help with Achieving the Perfect Order?
The demand-planning process for GNFR is very different from that of GFR, as it includes variables that other GFR products may not have. Understanding how much demand an organization has for certain GNFR products is crucial to that company writing the Perfect Order. A GNFR Perfect Order consists of the right materials being ordered to be delivered at just the right time.
Once the plan is fully understood by the organization, orders can be placed that cover everything the organization will need for any project. Understanding the demand is essential to these orders, as the quantity of each exact article is important. The timing of each of these articles is equally important with regard to finishing the project in the specified timeline.
How Does Demand Planning Relate to Achieving Perfect Delivery?
Creating the Perfect Delivery relies on a collaborative approach among multiple parties:
- The buyer must have open communication with their suppliers to ensure they are ordering the correct products at the correct times to hit project timelines. The supplier also needs to be demand planning to make sure they are able to fulfill all of the buyer’s orders.
- The buyer must have the rest of the organization in place to complete the necessary receiving, paying, and installing of all GNFR purchases.
- The buyer must keep track of each order’s status so that corrections can be made quickly if there are any issues.
What Role Does the Supplier Play in Achieving Perfect Delivery?
Supplier forecasting is crucial for ensuring the Perfect Delivery is achieved. The suppliers must forecast the demand to understand exactly how much of their product is needed. GFR suppliers are forecasting what should be produced so the shelves are full of what the final customers are actually going to purchase. GNFR suppliers need to understand what items the stores will be using based off of their construction schedules.
Supplier forecasting helps suppliers deliver OTIF (on time, in full) by gaining a better understanding of what a retailer’s major needs will be. But forecasting for GNFR suppliers will require deep collaboration and intense planning with their customers. If the demand isn’t planned collaboratively, the purchase orders must be submitted extremely early in the planning process so the supplier can produce what is needed. Demand planning allows suppliers to produce the correct inventory for when the orders are needed to ensure high fill rates.
Demand planning can help create the Perfect Order by streamlining the ordering and fulfilling process. Open communication and OTIF supply chain visibility are key in achieving on-time and under-budget projects and submitting Perfect Orders for all present and future orders. Companies wishing to increase their bottom line must strive to find the proper automation tools and processes that work for them and keep the lines of communication open among all involved parties. In doing so, the likelihood of achieving Perfect Delivery is increased, which can help ensure that projects are completed in the specified timeline.
Lumatrak provides a full range of real-time OTIF visibility tools to help you better manage supplier and delivery performance from order to the final mile of your indirect goods supply chain. Provided in the cloud through its Software-as-a-Service (SaaS) offering and already connected to vast number of manufacturers and contractors, Lumatrak’s solution can be quickly implemented to complement and enhance any ERP, Strategic Sourcing and Procure-to-Pay systems.
To learn more about how a better GNFR-delivery management solution could save your company both time and money, contact the team at Lumatrak today.