SOURCE: Aberdeen Group

Aberdeen Group

December 09, 2009 10:00 ET

Improve Sales Revenue With Demand Management

New Research Profiles the Best Approaches for Build-to-Stock, Build-to-Order and Engineer-to-Order Supply Chains

BOSTON, MA--(Marketwire - December 9, 2009) - Aberdeen Group, a Harte-Hanks Company (NYSE: HHS), announces the release of its latest report, "Demand Management: Enabling Sell Side Collaboration to Improve Sales Revenue." This study highlights the specific approaches that companies with different types of supply chains need to adopt with respect to demand management.

"In these times of economic uncertainty and global credit crunch, companies are actively seeking smart strategies for managing demand volatility," said Nari Viswanathan, vice president and principal analyst, Aberdeen. "Traditional approaches of solely focusing on being demand driven from a demand planning perspective are not adequate. Companies need to balance demand planning with short term responsive strategies."

To identify top performing companies in demand management, Aberdeen looked to four key measures: forecast accuracy at the product family level; forecast accuracy at the SKU level; cash conversion cycle; and customer service levels. Top performing companies are able to achieve markedly better performance across these measures, which have a significant impact on business results.

Between those top performing enterprises and their peers, there are some notable differences in the tools they use for demand management. Specifically, high-performing companies are 1.6 times more likely to utilize a "best of breed" solution, and are thirty percent less likely to be using spreadsheets to be solving demand management problems. "In leveraging demand management technologies, top performers are focusing on leveraging the tools beyond out-of-the-box statistical forecasting and doing external collaboration, allocation of forecasts to lower levels, and customer level forecasting for improving customer service levels," notes Viswanathan. Beyond technology adoption, top performers are also more likely than their peers to create a single demand forecast with inputs from multiple roles in the company, as well as to have the ability to include promotions and other demand-shaping activity into demand forecasts.

A complimentary copy of this report is made available due in part by the following underwriters: Kinaxis and SAP. To obtain a complimentary copy of the report, visit:

Visit for additional access to complimentary Supply Chain Management Research.

About Aberdeen Group, a Harte-Hanks Company

Aberdeen provides fact-based research and market intelligence that delivers demonstrable results. Having queried more than 30,000 companies in the past two years, Aberdeen is positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen for insights that drive decisions.

As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information - Opportunity - Insight - Engagement - Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen or call (617) 854-5200, or to learn more about Harte-Hanks, call (800) 456-9748.

© 2009 Aberdeen Group, Inc., a Harte-Hanks Company
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