The Basics The Value of POS Forecasts Old Habits Die Hard Definitions and Synonyms New Product Introductions
100
What is POS / sell-through data?
Instead of historical shipments, Alloy recommends using this measure of end consumer demand to create forecasts
100
What is a demand spike?
These types of rapid change led to large-scale OOS for products like toilet paper and home workout equipment during COVID
100
What are historical shipments / sell-in?
Most companies today primarily rely on this type of data to create forecasts
100
What is a sell-through forecast?
Your POS forecast by a different name
100
What is a brand new SKU?
This type of product launch is particularly hard to forecast because it lacks any historical data
200
What is sell-in?
A different name for shipments to your retailers
200
What are Lost Sales $ and OTIF Fines / Poor Service Levels?
If you under-forecast your business, you're likely to experience these two quantifiable negative business outcomes
200
What are Excel or Google Sheets?
Many mid-market companies have built in-house demand planning capabilities using these tools
200
What is a forecast baseline?
This terms refers to the forecast(s) you make adjustments to in order to create your demand plan
200
What is an adoption period?
New products take a while to ramp up demand during this phase of their lifecycle
300
What is Sales & Operations Planning (S&OP)?
This formal process reconciles the demand plan with other operational plans
300
What are markdowns, charge-backs, spoils or returns?
These types of fees are paid to retailers to compensate them for unproductive inventory (double points if you can get more than two)
300
What are promotions?
With no way to effectively measure their impact on demand, most planners go with their gut and use estimates when forecasting these events
300
What is a production plan?
A core output of supply planning
300
What is a transition SKU?
A term for replacing a product with a slightly different one that will cannibalize all of the demand for the old one over time
400
What is a shipment plan / sell-in plan?
The typical output of a demand plan
400
What is Experiments / Test & Learn
Customers use this Alloy feature to measure sales lift from events so that they can more accurately forecast similar events in the future
400
What are customer orders?
If there's a meaningful change in consumer demand but you have no way to track your forecast against POS, the demand shift will show up in this form a few weeks later
400
What is a purchase order (PO)?
When your customer requests a shipment, it shows up in your system in this form
400
What is a door count expansion?
If you launched in Walmart's Northeast region last year and are going nationwide this year, you'd plan using this type of new product introduction workflow
500
What is supply planning?
If your prospect is wants help creating a production plan, they're likely looking for this type of solution
500
What is a retailer forecast?
Changes to these largely automated predictions are responsible for unpredictable orders that leave brand manufacturers scrambling
500
What are sales targets?
Instead of forecasting, some companies create demand plans based on what their revenue goals, using this measure as their baseline
500
What is supply plan?
If you were in perfect sync with your customer, your demand plan would be equivalent to their _____
500
What is a comparison SKU?
Without historical data, you'd use this type of product to estimate what demand might be






Demand Planning 101

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