Managing Product Life cycle in SCM can be an intricate challenge – this is a key factor for both Demand Management as well as Supply Chain Management. And one solid sounding answer does not fit every industry.
We have developed industry-specific demand and supply models that form the blue-print for our diagnostic and transformation consulting. If the proposed solution does not address the specific industry model, then efforts to implement a solution will be in vain. Companies spend millions of dollars to find out later that this specific solution does not work for them. Back to Square one – oops Excel!
A simple page out of the product life cycle illustrates the importance of defining the demand-supply model. With a 18 to 24 month horizon for demand planning, you may not model the entire life cycle for your product.
Have you ever seen a forecast that looks like a bell-shaped curve in the future? In most cases no. But this is entirely possible for a technology company with a short life cycle.
It maybe just eight months. The forecasting and planning approach should be entirely different for short-life cycle products.
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