How to Meet Unconstrained Demand in a Constrained World, Part 1

October 1, 2024
How to Meet Unconstrained Demand in a Constrained World, Part 1

By Chris Lauchner & Geoff Shive

In this insightful article “How to Meet Unconstrained Demand in a Constrained World,” Chris Lauchner and Geoff Shive highlight how businesses in the consumer packaged goods (CPG) and retail sectors can thrive by mastering demand planning amidst supply chain challenges. In today’s volatile market, companies are constantly battling supply constraints, from raw material shortages to production bottlenecks. Despite these hurdles, the ultimate goal remains the same: meet customer demand without compromise.

Lauchner and Shive introduce the concept of unconstrained demand—the ideal sales potential if no barriers existed. Understanding this demand unlocks key advantages for businesses, including sharper sales forecasts, streamlined inventory management, and unbeatable customer satisfaction. But real-world challenges—whether it’s limited production capacity or shifting consumer trends—require smarter strategies to bridge the gap.

This is where advanced demand planning steps in as the game changer. Powered by data analytics, machine learning (ML), and artificial intelligence (AI), demand planning gives businesses the precision they need to forecast, plan for multiple scenarios, and respond swiftly to market changes. Companies can optimize inventory levels, reduce costs, and keep supply chains in perfect sync, all while delivering exactly what the customer wants, when they want it.

The article sets the stage for part two which will dive into the transformative benefits AI and advanced tools bring to optimizing demand planning.