Improvement of Demand Management Process by Implementing Forecasting Models and Tools

This paper discusses the main methods, models and tools to improve the process of planning the demand of the manufacturer's company, and also describes initiatives to improve this process on the example of Coty Company (Professional Department). The main measures to optimize the demand planning process in the Company are switching from demand planning of the CIS countries based on the history of primary sales to demand planning based on data on secondary sales (customers) and automating temporary lack of goods and promotional activities on the sales history, as well as on the demand forecasting model. As part of the initiative to switch to demand planning based on secondary sales in the CIS countries, special attention was paid to developing a transition to demand planning based on secondary sales, finding the best tools and models for forecasting secondary demand, developing own secondary sales planning tool and describing the future business process of secondary demand planning. As part of the second initiative, emphasis was placed on finding and analyzing the factors determining the extent to which product absence and promotional activities were conducted, on the sales history and forecast of future demand, building an appropriate regression model, describing the future business process and basic requirements for updating the Order Management Module SAP and JDA Demand Planning module. The relevance of this work lies in the fact that more and more companies are beginning to realize the importance of accurate demand planning and show interest in optimizing its process. This can be explained by the significant economic effect that can be achieved through its optimization.