Demand forecasting can be a daunting task in the beverage industry. Use these9 steps to help you develop an action plan to conquer the demand planning challenge.

1. 9 Steps to
help
beverage
companies
improve
their
Demand
Forecasting
process
Demand Planning
People
Process
Data
Technology
www.halobi.com

2. Demand
forecasting
can be a
daunting
task in the
beverage
industry
Use these
9 steps to help
you develop an
action plan to
conquer the
demand
planning
challenge.

3. 1. Start at
The End
Before starting, ask:
What do I want my
demand forecasting
process to include?
This impacts your
resource capacity,
team assignments
and choice of
software. Consider
your objectives to
ensure your process
and people are right
for the purpose.
Learn more:
Develop a roadmap

4. Demand
Planning
Marketing
Sales
Review Prior
Period
Supply
Planning
Shipment Lift
QTY
Add Market
Intelligence
Validate Total
Forecast
Demand
Consensus
Forecast
Release to
Supply
Planning
Validate
Baseline
Shipment
Stat Forecast
Consumer
Support
&
Innovation
Demand Forecasting Process
Learn more: Tools that can help
Outliers,
Exceptions,
Updates

5. 2. Consider
What You
Need
Most Suppliers and
Distributors don’t
know if they have a
problem with their
Demand Forecasting
process.
How can you define
a problem, if you
don’t know there is a
problem?

6. Beverage Companies Top Forecasting Challenges
8 Challenges 8 Solutions
1. Multiple forecasts with departmental bias
(Finance, Sales, Marketing, Demand, Supply)
2. Forecast accuracy
3. Supplier/brand/SKU proliferation
4. Lead times
5. Code dates
6. New product forecasting
7. Manual processes / Excel
8. Laborious reporting
1. Consensus forecasts
2. Single data source, using more data to
forecast, segmentation
3. SKU rationalization / segmentation
4. Lag accuracy
5. Process management model
6. New product forecast models with
cannibalization accounted for
7. Standardized dashboards
8. Database automation tools

7. 3. Measure
Data Quality
Every year, data
volumes grow
exponentially so as
technology.
With so much
changing data, you
need to plan for
measuring and
updating quality of
your information on
an ongoing basis.
Learn more:
Data Quality

8. 4. Benchmark
Your Progress
• Examine where
you are now
• Establish where
you would like to
be
• Assess your
performance
against those
targets
Learn more:
Dashboards

9. Release
Forecast
Gain
Alignment
Add Market
Intelligence
Generate Base
Statistical
Forecast
Update Demand
Data
Review Prior
Month
Scope of Demand Planning Process
Reporting
Analytics
Exception
Management
KeyTechnologyCapabilities
Hierarchy
Management
Outlier
Correction
Realignment
Profile
Management
Statistical
Modeling
CRM / TPM
Integration
Event
Management
Innovation
Modeling
Version
Management
Demand
Consensus
S&OP
“What-If”
Simulations
Forecast
Release to
Supply Plan
Benchmarking Your Process
Learn more: Tools that can help

10. 5. Secure
Team Buy-in
Stakeholder support
is key to demand
planning success. It
can no longer be a
particular job title or
siloed department
function.
Think about drivers
and pain points for
the business, and
show how you
demand planning
process changes will
help improve things
by making more
money, reducing
spend, saving time,
or reducing errors.

11. 6. Build an
ROI, Get
Investment
Connecting the
demand planning
process to the
company’s objectives
creates a good
business plan. Key
KPIs to consider are:
 Revenue
 Cost
 working capital
 margins
 Waste
 Sales orders
Learn more:
Build your
business case

12. 7. Put
Effective
Processes
in Place
 Ensure you have
proper measures
and metrics and a
way to
communicate
them
 Ensure everyone
in the
organization is
trained
 Hold regular
meetings to
ensure processes
are effective and
efficient

13. Find software and data that fits your needs today but can also scale
with your business.
8. Get the Right Technology in Place

14. 9. Measure Your Progress
 Lower inventory levels
 Less excess and obsolete product
 Increased service levels
 Optimal use of working capital

15. For more information about effective
Demand Forecasting, contact Halo.
www.halobi.com
+1 888.300.0219
info@halobi.com
@halo_BI