News

Better Than a Finger in the Air

Supply Chain Europe Magazine

August 10, 2010

Read the article

Recent years of economic upheaval have made forecasting demand increasingly difficult for consumer products companies. Facing the largest drop in wealth in decades, consumers became more conservative and searched for ways to save money on household spending. Large purchases were postponed or eliminated, effectively altering traditional demand patterns. Widespread promotions further distorted consumer buying behaviour, and the shift to store brands, in some cases, even changed it permanently. This increase in demand volatility and forecast error taxed the supply chain at a time when manufacturers’ profits were already being squeezed.