How to Achieve Demand-Driven Intelligence
A Demand Signal Repository (DSR) is emerging as one of the foundational building blocks of demand-driven model. But what exactly is it and how can it help?
In short, it's an integrated collection of demand data from many disparate sources, such as point-of sale (POS), syndicated, loyalty, internal analytics and ERP systems. It creates a baseline you can use to measure true demand sensitivity. DSRs are commonly linked to three major benefit areas:
>Supply chain -- improved forecast accuracy, inventory reduction and out-of-stock reductions
>New product launches -- far more actionable and predictive demand data for new products
>Trade promotion analytics -- a common foundation for monitoring effectiveness and efficiencies of promotions
However, although DSRs have received a lot of attention over the past 24 months, they have failed to truly align with Trade Promotion Optimization. AMR Research recently found that 56 percent of all DSRs are used for demand forecasting improvements, the highest category among all reasons for using DSRs. The supply chain-centric, however, diminishes the overall value of DSRs.
To unlock much more value, tightly integrate DSRs with your promotional activities, pricing changes and new product launches. You must move your DSRs from your supply chain and IT organizations to your marketing and sales teams.
To learn more about how to close the gap between DSRs and the demand functions of trade, shopper marketing and new product launches, click here and read this article in its entirety.
In short, it's an integrated collection of demand data from many disparate sources, such as point-of sale (POS), syndicated, loyalty, internal analytics and ERP systems. It creates a baseline you can use to measure true demand sensitivity. DSRs are commonly linked to three major benefit areas:
>Supply chain -- improved forecast accuracy, inventory reduction and out-of-stock reductions
>New product launches -- far more actionable and predictive demand data for new products
>Trade promotion analytics -- a common foundation for monitoring effectiveness and efficiencies of promotions
However, although DSRs have received a lot of attention over the past 24 months, they have failed to truly align with Trade Promotion Optimization. AMR Research recently found that 56 percent of all DSRs are used for demand forecasting improvements, the highest category among all reasons for using DSRs. The supply chain-centric, however, diminishes the overall value of DSRs.
To unlock much more value, tightly integrate DSRs with your promotional activities, pricing changes and new product launches. You must move your DSRs from your supply chain and IT organizations to your marketing and sales teams.
To learn more about how to close the gap between DSRs and the demand functions of trade, shopper marketing and new product launches, click here and read this article in its entirety.