In the first article you already got to know the approach of predictive planning as a success factor for companies. In the following article, areas of application as well as opportunities and benefits of the method are presented.
Areas of application
Companies expect a better understanding of their market environment through the use of predictive planning. They want to better understand their customers’ purchasing behavior and incorporate this understanding into their planning. If the expected sales can already be estimated in the planning stage, pricing, logistics and production can be aligned accordingly. The earlier this knowledge is available, the more flexibly you can react, for example, by adjusting production or stock levels. The result is higher sales and more satisfied customers.
Great benefits through predictive planning
The operational benefits of predictive planning for companies are multifaceted. It ranges from higher planning quality and accuracy to the reduction of planning effort and the use of resources to the opportunity to be able to react more quickly to requirements in order to gain a clear competitive advantage. The rapid provision of forecasts and assessments is important for success in complex markets.
Through regular interim forecasts, management receives feedback on the current status and thus a picture of the overall situation of the company. Less detailed rolling forecasts at shorter intervals provide those responsible with a better overview.
Efficiency through transparent processes
Overall, there are strategic advantages for companies, ranging from increased earnings and higher operating margins through the reduction of several cost components to increased efficiency due to transparent planning processes.
The planning focuses on key drivers relevant to management. A stronger focus and more automation make it possible to carry out planning and forecasts faster and more reliably. Uncertainty and dynamics can be taken into account with the help of simulations. As a result, there are resilient options for effective action in a multitude of possible events.
Current technical possibilities such as digitized processes, comprehensive data storage and powerful computing capacity in conjunction with robust, mature methods and algorithms allow corporate planning to be taken to the next level through predictive planning. The predictive planning approach provides greater security and can help companies to anticipate the future reliably and quickly, even in the present, if the necessary framework conditions are met.
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