IT Glossary

Demand Pattern Analysis

Demand pattern analysis is an emerging area in supply chain management (SCM) that analyzes customer and demand data to better predict demand across multiple time horizons in a demand-driven value network (DDVN). For example, in the strategic time horizon (12 months to three years), companies can analyze macro changes in customer demand, macroeconomic indicators and corporate strategic business goals, such as reaching a target market share for an established product. Tactically (12 weeks to 12 months), companies can better analyze demand with increased collaboration with customers on marketing plans, including more alignment for new product introduction (NPI), seasonality or a promotional event. Operationally (one week to 12 weeks), companies can leverage frameworks like collaborative planning, forecasting and replenishment (CPFR) and causal forecasting, as opposed to relying on lagging historical demand data to determine downstream needs and opportunities.

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