Every new product launch presents major challenges in terms of forecasting demand levels over time. The reality is that the lifecycle of a new product is the ultimate unknown from a demand planning perspective. But that’s no excuse for not developing a plan.

    Planning for difficult to forecast demand for new products

    The short-term lifecycle of new products is difficult to plan and therefore vital to do so in order to avoid costly excess product or lost sales opportunities.

    new-product-introduction-planning-softwareIn our view a New Product Introduction (NPI) plan needs to account for:

    • Baseline demand - long term sales volume at normal operating capacity
    • Demand during the initial launch

    We use SO99+ machine learning capabilities in this complex area to help predict demand during launch. It offers advanced attribute clustering that can identify historic demand patterns for similar products and it utilizes stochastic (probabilistic) forecasting to predict baseline demand.

    Our New Product Introduction planning software can predict the performance of a product launch early on using advance signals from web analytics and Social Sensing. Traditional NPI forecasting systems using older techniques often fail to account for these indicators, but our advanced demand planning software with embedded machine learning automatically incorporates these inputs and leverages deep learning to respond to early market signals and produce a more accurate launch forecast.

    During many new product launches where significant revenue and sales occur in the first few months, our demand planning software and improved forecasting capability promptly reacts to early market signals. This enables planners to better react to the customer response and helps reduce lost sales, optimise stock and generate significant revenue and growth.

    “The flexibility of consultants during all this change was world-class … So far this project has gone far better than we ever could have imagined … We’ve actually managed to grow our revenue and reduce our inventory costs, so I’m very pleased.”
    - Chris Clowes, Supply Chain Manager, Costa Express
    "Brookes Retail has proven to be an ideal partner in helping O2 plan a supply chain that can respond to changes in demand"
    - David Flaxten, Demand Planning Manager, O2 UK

    Brookes Supply Chain Solutions

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    use collaborative data from multiple sources for more accurate demand forecasting
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    optimise in-store and warehouse inventory levels to reduce inventory costs
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    improve demand forecast accuracy using signals from data and AI, including seasonal variations, long tail and intermittent demand products
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    reduce out-of-stocks and increase on-shelf availability

    About Brookes Supply Chain Solutions

    Brookes Supply Chain Solutions, the official UK distributor of ToolsGroup SO99+ supply chain software, brings together the best supply chain people, processes and technology to create sophisticated, highly automated demand-driven solutions which deliver measurable and sustainable business value.

    We offer market leading consultancy, software and managed services for inventory optimisation, demand forecasting and product replenishment planning.

    We understand the challenges enterprises face in a digital economy with high customer service and investor performance expectations.

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