Crown Paints have recently adopted a new software application for forecasting future demand. The rationale for this was explained by Darryl Senior, Group Supply Chain director, Crown Paints Limited – “There have been two major shifts in our business, driven largely by our customers. Firstly, they no longer wish to hold large amounts of inventory of their own, so it falls to manufacturers like Crown to be far more responsive and to collaborate with customers to meet their needs in a competitive market. Secondly, the role of marketing promotions to shape demand is now far more pronounced. Both of these mean we need to be able to forecast demand accurately and quickly, and it is this combination of trends that has led to us investing in Infor Demand Planning.” Seasonal variation in demand is also the norm in this industry.
The Infor system will enable Crown Paints to shift from monthly forecasts to forecasting weekly and daily if necessary. This should enable Crown Paints, which has 4,400 SKUs, to improve customer stock availability and service. In addition, exception reporting will flag when specific SKUs sell more than has been forecast, enabling the operator to focus on the most volatile products that benefit most from adding market intelligence and a quick response to changing demand patterns.