Is Historical Usage the Right History?
A key pillar of inventory management is creating a statistical forecast based on your company’s historical usage. In the pandemic and post-pandemic era, this can be a challenge.
The problem: When we look ahead to a post-pandemic time, the historical usage recorded in the months of the pandemic will generate a forecast that does not necessarily match “normal demand.”
Another problem: The standard practice of adjusting usage manually is not efficient in pandemic/post-pandemic conditions.
Consequently, inventory managers need to be on the alert and ready to adjust lead times, history, forecasts, and more.
While there is no “quick fix” COVID-19 solution to eliminate the virus’ impact on your company’s inventory management, we have worked closely with our clients to help them survive and thrive during the pandemic. Based on Demand Planning’s rich functionality, which includes the ability to run numerous reports, make automatic adjustments, and alert users to potential issues, many clients are following the steps outlined below to manage their inventory during the pandemic.