Demand Planning in the Face of Shortages

Case Study Nov 5, 2023
Author
Author
Ryan Richt

Well Principled Nucleus supported the Sales and Supply Chain organizations with the WP Allocate application, informing the process of supply allocation to retailers.

As a mid-size household goods company adapted to swings in demand and supply constraints caused by COVID-19, they struggled with repeated damaging stock outs at preferred retailers. The sales team had trouble knowing which purchasing channel their customers would gravitate to, so they ended up missing out on a significant amount of revenue and causing frustration with their Supply Chain planning team, who couldn’t count on a consistent plan for allocation every cycle. WP gave both teams a reliable tool for understanding what potential demand would be in an unconstrained supply environment, then they could apply their known constraints due to shipment delays and select the profit-maximizing allocation.

This new process gave the teams visibility into the qualitative and quantitative elements that drive an optimal allocation. WP Allocate provides the cross-functional team with a snapshot of both inventory location and issues, as well as a detailed demand forecast, per retailer, per geography, per store.